The selloff is nearing the end. Volatility is exploding in nearly everything. There is blood on the streets. The news is everywhere. Let’s look at the chart.
This shows our buy and sell signals.
The signal of a bottom has two components
- Volatility expansion (as seen on the third graph)
- Russell sentiment selloff. (as seen on the fourth graph)
We currently have the first and I anticipate the second to occur this week.
After the signal I would go long on a trailing stop above the daily high. It may take a few days to get this signal so stay tuned.
