Nasdaq Hits it, VVIX/VIX Called it

On Wednesday we went short the Nasdaq100 for the WhatsApp Broadcast Group near 16315/20s, targetting 16200, with a stop above 16400. Those whose stop was not hit, saw the index fall as low as 16230 and now is testing 16210. We used the VVIX/VIX ratio as an added basis for shorting the Nasdaq (not the DOW30, nor the SPX) and laid out the below chart in today's Tweet to bolster confidence in the call.  Again, entering a trade (or any other trade) is all about confidence i.e having as sufficient technical reasons (such as patterns, moving averages, trendlines and/or confluence of all) and fundamental reasons (if you're adept at figuring them out). In the case of the VVIX/VIX, the possible double top (see chart below) helped call a quick short -- just as conversely the double bottom (laid out in the latest Youtube Video) helped us call the longs in DOW30. See the latest video on how to use the VVIX/VIX ratio and where to get and chart the index.

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