Looking at the market into the close, there is a low risk entry to profit on a correction moving into February or March. If we head down from Thursday Feb 3rd, 2022 (Today is the Feb 2nd). Then we can get a new low in NasDaq possibly and ride the vix upward.
Not sure on the size of the move down, but below are some methods that are possible protecting any longs. This is just a personal note and never any trading advice. More of a journal to see how things play out.
Interesting Setups:
NasDaq Composite:
- Low risk short
- Month Bear Elected in January
- Retesting Today (Feb 2nd, 2022) on Day Turn Point + Direction Change
- Stop At The Day Bull (Yellow)
VIX (VXX)
- Using the VXX (ETF) to protect one’s portfolio
- Possible correction into February/March in S&P500
- Thus the VIX (VXX) can go higher measuring market fear
- Was below Day Bear at 4pm, Then Moved Higher 4:15 Close Above
AMC Short Setup
- Wait for Close, Was Up most of Day
- Prior Day Rally, bounce off Day Bull
- Today, Closed Below Day Bear – Short
- Target 14, 13.50 area
Summary Of Trading:
- It’s useful to wait for the close
- Most largest moves appear to be overnight
- Day trades get some gains, but swing trades better when setup appears
- Use multiple Index’s and Vix to see if down trend can happen
- No Guarantee, Know Where Wrong and Keep Losses Small