After being a buyer of the market pullback this week (still maintaining high cash) today I added volatility ETF, VIXY. This as the VIX pulls back to fill the ‘fear gap’ it left on Monday.
This is no recommendation, but it is a position taken as a temporary balance within my portfolio and I wanted post it for review and risk management consideration in whatever way meets your own purposes. I added it in the event that Monday was not a one-off and there could be more seasonal downside work to do in the next few weeks. But I am only committed to it if it holds the SMA 200 after this gap fill and if markets do not start taking out lost short-term support (now S/T resistance).
The last couple of days have provided market relief, hammering the VIX. Now we find out if that is all it is or is perhaps something better. I want a little more protection until the answer comes in.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.