01/26/2010 After Bell Quick Summary

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One trick today, when both VIX and SPX closed in red, 18 out of 25 times (72%) a green close the next day.


One buy signal was triggered, it’s not as good as my standard VIX MA ENV setup, but it’s a well known setup. For me, however, it doesn’t matter anymore, because at today’s close the SPY ST Model sell signal was triggered and according to my test whenever SPY ST Model is in sell mode, neither did VIX MA ENV or VIX BB BUY setup work well, while VIX MA ENV and VIX BB SELL setup worked good, so the focus from now on will be on SELL SETUP only.


The bottom line, don’t try to be a hero here if you don’t think you’re smarter than those multi-billion guys because more than 50% down ticks today on QQQQ was BLOCK sell!


In case someone asks, yes, I did notice that ISEE Indices & ETFs Only Index was extremely low today (in fact the ISEE index itself was closed at 52 week low today). The chart below (see red bars, highlighted when ISEE Indices & ETFs Only Index was closed less than 35) should good enough to tell you what happened thereafter recently. However, I’m not intended to imply it means a top this time, actually I don’t think merely 4 cases mean anything.


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