The volatility index (VIX) dropped considerably today. It ended up closing on its lows. This could indicate that the buying might continue for the next few days. Today's move was not the rally that I was expecting. I was expecting a rally over the next few days that would look more like a "B" wave...choppy and sideways looking. Instead we wiped out Tuesday's drop in one day. That price action is more bullish than bearish. I would hold off on buying put options until we can see if there is a strong follow through to today's rally. If we do rally higher over the next few days, I like the bullish pattern on Visa (V). I'd like to get the confirmation of a close above the 10 day MA. The commodity stocks also rallied pretty strong today...especially silver.
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