The CBOE on Thursday launched options on the VXST, the nine-day volatility index created to deliver an even shorter-term hedging horizon than its progenitor, the 30-day Vix. See http://www.cboeoptionshub.com/2014/04/09/new-vxst-options-ten-points-know/ for more information.
SPDR S&P MidCap 400 (NYSE: MDY) gained 0.97% yesterday while ETFs tracking other major market indexes gained 1.08% to 1.71%. MDY was the only major stock market index ETF on a PowerRatings buy signal at the close yesterday. PowerRatings has identified several timely buy signals in MDY over the past several months. Stocks have been… [Read More]
SPDR S&P 500 (NYSE: SPY) fell 1.11% yesterday with 80% of all the volume on the New York Exchange being to the downside. Heavy downside volume of 80% or more is often a sign that the market has become oversold in the short term. Another sign that a short-term reversal could be near is when… [Read More]
Emerging markets were among last week’s winners. ETFs tracking stock market indexes in Mexico and Brazil each gained more than 2% last week. Leveraged inverse funds with exposure to these markets became oversold as the stock markets rose. ProShares UltraShort MSCI Brazil (NYSE: BZQ) and ProShares UltraShort MSCI Mexico (NYSE: SMK) both ended the week… [Read More]
Every month, the unemployment report has the potential to move markets. Some studies have found that the trading range of broad market indexes is three times greater than average on the day after the report. Unemployment has taken on greater significance since the Federal Reserve pegged low interest rates and easy money to the unemployment… [Read More]
Many traders avoid short positions. The reasons for this might include the high costs associated with short trades since traders have to pay their broker a variable interest rate on short positions. Traders may not like the theoretically unlimited risk a short position carries. Legal restrictions on some retirement accounts and investment policy restrictions on… [Read More]
Direxion Energy Bear 3x Shares (NYSE: ERY) ended yesterday oversold with a PowerRatings of 9. Since the beginning of the year, PowerRatings have identified a number of bullish and bearish turning points in this ETF. ERY shows how PowerRatings can be helpful for short-term traders. PowerRatings is a stock rating system that ranks stocks on… [Read More]
SPDR S&P 500 (NYSE: SPY) gained 0.82% yesterday as stocks rallied. Most stocks ended the day higher with 74% of New York Stock Exchange listed securities closing up. On the NASDAQ, 78% of the volume was to the up side. Overseas markets also rallied. At the end of the day, four of the ten most… [Read More]
Most of the world markets are in neutral to overbought territory. With today being the last day of the quarter I’m sure they’ll do their best to window-dress prices higher. Another day or two of rallying will likely be followed by a pullback, especially in overbought Country Fund ETFs trading below their 200 day ma.
Market sentiment indicators usually rely on polls to determine if investors consider themselves to be bulls or bears. That approach offers useful information but the division between bulls and bears doesn’t tell us what traders actually want to do with their money. The PowerRatings web site offers a list of the most requested stocks. This screen… [Read More]