Looking at the 3 day bars of the Lazy Man portfolio XLB is maintaining a momentum edge but, in sync with Friday’s DIA prognosis, the odds favor a rollover for the Shorts. The VIX is negative this morning as are most of the major indices. This type of divergence can’t last long even on expiration week, when premium decay can be highly volatile. Once again the VIX is probing the lower support band and we are seeding a gradual weakening of market internals as of mid-day. Odds favor a Long VIX position at least short term.
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