My Lions! The VIX Hits Decade Low.. So, Is It Time To Go? By Gregory Mannarino

in money •  7 years ago 

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A silly catch phrase associated with trading and Wall Street goes like this, "when the VIX is low it's time to go."

So now with the VIX hitting a decade low, does that mean it's time to go? (Sell stocks)

Just yesterday I had written an article and posted it here on Steemit where I had said specifically that the set up for the stock market is higher, and here today as I am writing this article the stock market is indeed higher-with the Dow Jones industrial average up 82 points.

So what's going on here?

The dynamics in play right now are supportive of the risk on trade.
Despite market volatility at a decade low, the market realizes that the Federal Reserve is still running the show, and will support the market at any cost regardless of how extreme distortions across the spectrum of asset classes becomes.

From a technical/dynamic standpoint, we are seeing a stabilizing dollar, some stabilization in crude oil, and some stabilization in the bond market however, we cannot ignore the flattening yield curve (something which is a bad omen and a very strong predictor of future economic activity).

Summary: in my view the stock market will continue to hit new record highs in the short term, and that my Lions means opportunity for us!

Gregory Mannarino
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Just went long crude oil today lets see how this plays out

Does a lion ever sleep on Wall St, like it does in the jungle, the quiet jungle?
No way!!!
The lion rips the face off Wall St and has our backs!

Vix is 9.4 thats insane.Looks like gold is getting hit as well.
Its a bit like musical chairs and we may as well keep playing until the music stops or the fed kills it :) .
Great post Greg ,upvoted and resteemed.

Some of the old wall st sayings have a bit of merit, i think they are derived from old warhorse stock traders who have learnt the hard way through either lost money or long careers.
My personal faves are.

  • A rising tide lifts all boats
  • The trend is your friend until the end
  • Bulls make money , bears make money and pigs get slaughtered.
    The longer i stay in this game the more they seem to make sense :) .

how do you trade such a highly manipulated market. If fundamentals don't matter how can figure out a trend ? Are certain markets less vulnerable to manipulation (more left alone)?

Knowing that the markets are manipulated is our strength. For example: we know the Fed. Will support the market no matter what happens-that is our strength.

I agree 100% with you. My question was more like; the fundamentals do not matter anymore. So unless you are on the "inside" like the PPT, how can you trade a market that doesn't run in a natural state. It seems like if you only bet ON the FED then you will come out winning. In other words there is no real trade..

Our lion king! Haha thanks for the information Greg as always. We appreciate everything you do

Up voted! Much appreciated as always! Yeah, it was funny yesterday watching the markets channel with the talkin' heads. That Kat from Shark Tank uh... um...Kevin O'reilly was defending his position on the Comey/Trump scripted chatter and mentioned the vix being very low and how "NOBODY" cared anymore! Haha, that shit was great and IMO he's absolutely RIGHT! I know I don't follow the smoke and mirrors circus anymore. But I do follow you Mr. mannarino and all the other LIONS here! Love this group. ROOOOOAAAAAAAR!

Well said.
You know , i love steemit ( thanks Greg for getting me into it ) but Greg's post's are one of the very few where i will sit down and read all the comments as well.
Many pearls of wisdom and some laughs as well.
Thanks.

@marketreport which trading platform do you prefer? TDAmeritrade , Schwab, ETrade, Scottrade ??????

They are all about equal. I like ThinkOrSwim and Fidelity Active Trader Pro best.

Thank you, sir. And thanks for recommending SteemIt.com. It's way better than You Tube.

lionesses lurk here too

That pesky yield curve! VIX is off the chain my friends! R.O.C.K. On / STEEM On !
Thank you again Brother Greg @marketreport www.traderschoice.net #1

Not time to go yet. Thanks Greg.

Thoughts and comments on the Market

Any comment on the divergence we are seeing between the S&P with FANG stocks and the S&P sans FANG stocks. From the outside looking in this seems like a conspiracy of the FED to merely pour society's money into the pockets of the super super rich. This is not a case of a rising tide lifting all boats, the rest of the S&P is DECLINING.

Bond market still nervous. Bill Gross coming out and making a warning about stocks being overpriced in fact almost all asset classes overpriced in his opinion. What are people's views on Gross, is he somehow another FED mouth piece? Is he honest? Is he deceptive? Has he warned the public before and was he proven correct or false? What's his trackrecord?

Gold taken yet another beating, 40 tonnes sold short to tip the market into bear mode, why doesn't another bigger bank every take the other side of these trades, do the banks have a code not to compete with each other?

Are cryptos an ally to gold, another front for the banking cartels that short the market and the FED elites that keep the USD the reserve currency king, can cryptos help gold and silver break free? If so how, why and when?

I think we're due for a pullback in equities and a uptrend continuation in gold and silver. Hope can only go so far.

The Lion is never wrong! The Lion takes advantage of the moment and stricks with force and determination! That Lions name is "Greg The Lion Mannarino!"

As long as they keep it propped up there is money to be made. They are not ready to take it all down. I think that is still a year off baring any major issue.

When is it going to stop???

Interesting info!
Thanks

Will the stock market ever go lower? Venezuela's is on a tear, but it's bogus. Only funny money. Can't our market do the same? Like Japan's which is held mostly by the central bank of Japan?

Another great post Greg. I would like your insight on the issue of taking profit by cashing out of crypto currency back to fiat dollars. You a pretty smart guy and I would like some critical thinkers to speculate on the future of how taxation may look/be enforced on the crypto currency system. Link is below. Thanks.

https://steemit.com/money/@threat08/avoiding-capital-gains-tax-15-avg-when-cashing-out-your-bitcoin-into-fiat-theoretically-of-course

VIX has been at a low for several years now, except for a few spikes here and there. Timing is everything on this play, be careful.

Thanks greg! Love your youtube channel btw

It's all getting rather daft.

Yes, totally agree. New highs short term and then often to come autumn correction.

Gregory. So if shit does hit the fan. Do you have a prediction of what Vix will spike to?

You stay up on everything good work.

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Greg, We the pride respect your analysis on the Markets and look forward to it every day!! Thanks

strap yourself in its going to be a rollercoaster.