Cycle Trading

[Duma]

I really don't see that Foot's chart identifies tops of spikes. By what method did he identify them? I can only see that it was a spike after the spike is formed and long past.

Looking at the chart now I can see that if there is a low for SPX (Aug17), then it does seem to happen near the same time as a spike in VIX. But this would not have been clear on the 17th since VIX had yet to turn down.

By the close of yday, it is very possible one might be able to deduct that a spike had been formed and thus assume that today would be an up day. But rather than sell puts which really are not worth much, why not just buy SPY, futures or some SPY calls.

My P10 chart that I posted this morning, identifed the turn on Aug 17th and I have been long ever since. So I see VIX as only a confirming signal. I know others like to use it as a signal, but I perfer TA's tied to price.

After the morning pop on Aug 17th, it brought IWM up to 122. A Aug26 123 call could be had for .62. As on now with IWM trading at 124.36, it is selling for 1.53. I would have liked to had a few of those, but .62 really isn't all that cheap. Until I need options because I am out of cash, I will just just keep buying TNA. I bought in at 76.06 and with TNA just now trading at 80.36, I am up 5.6%. With investment at 150%, that gives me a gain of 8.4% or 2.8% 1x. Not bad for 5 days.

YEA, TNA just made 3% for the day.

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