Karpel’s Corner: Large Caps ($SPX) Melt up After Hours

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

The market was mixed for most of the day yesterday with the S&P’s and the Nasdaq taking a bounce to the upside after hours. As I am writing this the S&P futures ($ESZ14) are up $10. On the surface this is quelling some of the recent volatility in the market.

The $VIX is still above $25, and the Small caps continue to lag this late afternoon melt up. At this point the S&Ps leading to the upside is often a sign that the prominent trend is in jeopardy.

I did hedge my $VIX position today with the Inverse VIX fund ($SVXY). This allows me to keep the long VIX exposure through this short term bounce.

I believe that the market as plenty of volatility so trade with scaled size. Look to add volatility exposure if you are still holding over 80% of your portfolio in Equities.

See you next time at the Corner!