Well, per my post last week we blew right through the crossroads, and Thursday/Friday big range days reminds me too much like 2008 all over again. As volatility picks up, you must swing on shorter and shorter time frames, and the mistake I made then as a leveraged trader is not getting smaller, faster, and more conservative, immediately. Therefore I am going to get very focused, and focused on volatility.
Money is money, and I am just getting pure. No need to look at a hundred stocks when everything is tied to volatility. I made my most money trading XIV and UVXY puts during these elevated levels in 2011 as intraday moves can give you a weeks worth of profits. There are a couple of trade-able edges in this environment, I have shared in the past, and will again.
Regarding gold, et al. I am staying away as I think we are deflating, and with the Fed ending QE, I don't see a catalyst, unless gold responds positively to a hedge unwind.
On to the VIX. I am looking for an overbought retracement (we may touch 17.80 area first), then a move higher to the 21 area. That will give us a very nice UVXY put trade. So for me, I have a VXX bull debit diagonal trade on Aug 29, Aug week2 29.50 (I have been opening, closing, and moving the sold leg every week) and will close he sold if we hit new highs, or a new buy signal on my expected dip. I also bought some UVXY Aug, 30 strike puts, and will follow the signal above. I will also point out XIV trades intraday, with tight stops.
We are back in a traders market, don't get sea sick.
www.realtimetradingsignals.com is my paid site.