Last week’s meltdown in nearly all major stock market averages caused volatility as measured by VIX to spike dramatically. It is now encountering strong, multi-year resistance at the 22.00% level. Could VIX spike even higher? Sure. Anything could happen in this crazy market. However, the chart below is telling us to expect a significant pullback soon.
If you are an RMB Group trading customer and followed the suggestion in our two Special Reports (released in March and updated in July) to use VIX futures as a hedging tool, the time has come to exit ALL of your remaining bullish hedge positions and move to the sidelines. (Click here to read our July Special Report on VIX.)
Consider re-establishing new bullish futures positions as a hedge for the stock portion of your portfolio on a drop below 13.00% in the cash VIX index.
Prices can and do change, so customers should check with their personal RMB Group broker for the latest. If you don’t have an RMB Group trading account and would like to know more about this or any other “Big Move” strategy we are currently recommending, give us a call at 800-345-7026 toll free or 312-373-4970 direct. You can also email email@example.com or visit us online at www.rmbgroup.com.