VIX SPIKED TODAY

The VIX spiked up today as the market sold off. This could be the start of the move down. The gap up this morning was strong enough to be that last push higher that I mentioned last night in the blog. We would still need some confirmation. We would need the selling to continue tomorrow and the VIX to continue to move up. We would also need to see the volume pick up. The volume was still fairly light. This is actually a good place for a trade. If the market opens down tomorrow, you could buy your puts and place a stop above today's high. If we move above today's high, you would want to be stopped out of the trade. It ends up being a very nice reward to risk. We can't control the direction of the market, but we can often control the reward to risk of the trade. I actually set up some Bear Put Spreads near the close today. It is more of a hedged position. I might buy some puts if the market starts selling off tomorrow.