How the VIX Indicator can help you trade

I haven’t used the word ‘nice’ when talking about the Market in a very long time.  This Market is starting to look nice.  The VIX is at the lowest pint in this past year.  New to trading?  The VIX is an indicator you will want to become familiar with.  It is a way of measuring the level of fear traders are experiencing when trading.  The higher the VIX the more fear and uncertainty traders are feeling.  Here is the VIX chart for the prior 12 month period.

LOOKING AHEAD

Next week starts the heavy earnings season when companies announce their quarterly returns and future predications.  The announcements I have listened so far have generally been good and have expressed optimism about their future.  Also, Sectors that usually show strength as the Market starts to go up are now doing so.  In my webinars I go into detail about these aspects and how to use them to set up profitable trades.

While things are looking rosier I still have a cautious approach to my trading.  I am only trading positions I have a lot of confidence about.  When there is a strong up Market many times I will trade positions just knowing the whole Market will drag everything up.  We are not there yet but I do see an Up Market forming

HOW AM I DOING?

It was a good kickoff to DATA which started officially on Friday.  Thursday was the orientation meeting to get everyone on the same page.  On Friday, I traded three CALL positions on Tickers who had earnings announcements.  The announcements were good but the herd sold off at the announcement for no sound reason that I could ascertain.  I thought they would go up and regain the ground lost in the selloff.  That’s what happened.  All I had to do was wait for a volume spike and hitch my trade to the hard up sprint.

I did see one Iron Condor trade on Friday – ADBE.  I do not think Iron Condors will be viable trades much longer as the Market starts to rise.  

Overall gains on Friday on my new $25K account were $1,393 for a 5.6% gain for the day.  I invite you to come and try out DATA.  It is my goal to lift the veil and teach you how to become a thinking trader.  The DATA community makes us all stronger traders.