The Gilmo Report

September 21, 2022

September 21, 2022 6:55 pm ET

They call him Flipper, Flipper, faster than lightning,
No-one you see, is smarter than he,
And we know Flipper, lives in a world full of wonder,
Flying there-under, under the sea!

  – The Flipper TV Show Theme Song, circa 1964-1967.

A 75-basis point rate hike from the Fed gave the market just what it wanted, although it took some time for it to figure out what exactly it wanted and whether it even wanted it.  The ensuing usual wild spinning to and fro was a day-trader’s paradise over the next two hours. A quick sell-off right after the announcement at 11:00 a.m. Pacific, my time, set up a lovely intraday long entry opportunity and the five-minute 620-charts all pointed the direction.

That played out very well as everything reversed on the 620-charts and off we went back to the upside with a sea of index green soon appearing on my screens. Once the 620s all reversed bearishly, however, it was time to pull the rip-cord on the longs and flip back to the short side. The easy way to play this type of instant flip was by jumping into my little friends, of which my favorite is always the ProShares Ultra VIX Short-Term Futures (UVXY).

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