It Works Until It Doesn't, 15th January 2023

2023年1月15日🖼 Daily Technical Picture 📈

➤ This daily note comes a day early because I probably won't have time tomorrow morning.

➤ The VIX has fallen to it's lowest level for many months. It looks to be heading lower. This was a result of continued optimism in something...I'm not sure what exactly. Nevertheless, I'm not interested in knowing. I'm only interested in making money.

➤ Previously, when the VIX fell to these levels, we saw it reverse higher with equity markets falling. It was going like clockwork. However, markets don't remain static, things works until it doesn't. Many people have found this out with the reversal of the Dollar Trade.

➤ The next level for the VIX to potentially reverse higher is at 16. This was the low set at the ALL TIME HIGH for the S&P500 equity index. If you look back further in time, this level was the lows set on many occasions in 2021.

➤ I remain long with a small position.

➤ Conclusion: FIX your eyes on the VIX.