TGIF - time for protection

SPX - now that was quick

SPX has gained almost 400 points since recent lows. The panic up has been stronger than the panic down and has taken most by surprise. Despite all the price action since early January, the SPX remains in a wide range and lacks a proper trend. In our thematic emails (premium subs only), we outlined the latest VIX guy logic on March 9 (the guy nailed it again) and on March 15, in our note "The only thing we have to fear right now is fear itself...", we suggested "How about one of those violent bear market squeezes?". Since then equities have exploded higher and vols have collapsed. The potential has played out very well. It is time to book profits and look for the next opportunity. Time for a thread and some early buying of protection.

SPX - say hello to resistance