There are two things to note here: a possible buying opportunity in VXXB that could materialize within the next 4-6 days, and a ‘camouflage’ short that we forced in the E-Mini S&Ps. Regarding the latter, we resolved to initiate a trade come hell or high water. Conditions were as poor as they get, since the broad averages and most stocks were trendless and oscillating within a very tight range range. The rationale for the trade was rules-based, as you will see, but it took horse-sense to formulate a plan. Just after the session ended, ES dropped to deliver a nice profit at the higher of two targets we’d calculated.
