With yesterday’s panic sell-off, the CBOE OEX Volatility Index once again surpassed its 200 day moving average by over 50%. This indicates another volatility spike condition similar to the one that I pointed out last month in this blog. Thus, it is time once again to look forward to a rise in the S&P 500 (SPX/SPY) over the next 20 trading days. While I was already long SPY from the last spike, I added to my positions with SPY call options.
At the time of this Blog entry