Fade Everyone, Including Yourself

Seeing as the VIX is holding above 40, and even 50, a certain degree of acceptance must be made by market players concerning the ongoing wild, seemingly random price swings on the major averages. To think otherwise would be to risk driving one's self mad rationalizing every single gap and swing. 

Thus, in light of yesterday's surge into the closing bell, this morning's subsequent hard move lower in the broad market may very well seem like the death knell of this potential relief rally. It is easy to see why bulls would become demoralized given the absence of dip-buyers so far this morning. 

But turning to a familiar chart for us of late, the near-term 15-minute timeframe for the QQQ ETF, below, we still have not breached the lows from Monday, nor Tuesday. If bulls can keep taking punches without getting knocked down again it could easily ignite another bounce this afternoon. 

In other words, with the VIX this high it is imperative to keep an open mind to just how things can change, as we have seen of late. Of course, if we keep sliding down towards $190 on QQQ (and 2734 on the actual S&P 500 Index) the situation would look increasingly grim for bulls.

But that's just it: The high volatility makes it necessary for the overwhelming majority of swing (overnight) traders to be in heavy cash and only carefully take on new positions in lieu of being a "blaster," or one who blasts heavily or nearly all-in long back into markets when they think they have bottomed. This is a concept we have discussed with Members in more detail.

As for actionable day-trades, the virus names like APT LAKE clearly are benefitting the most today.