Is There a Message in Netflix’s Price Action? Is there a Trade to be Made? Are the FAANGs and VIX Telling Us We Are Entering the Manic Phase in Equity Prices?

Readers of The Options Edge know that our preferred scenario for the overall equity market was a drop in prices of as much as 10% as defined by the popular averages like the S&P 500, Russell 2000, Dow Jones Industrial Average, NASDAQ 100, etc. then a rally that blows by the old highs. We expected this process to take many months and possibly as long as a year. In our estimation, we thought (and still do) that investors had gotten too complacent and that a swift and scary correction was needed to create the fear necessary to drive share prices higher.

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