When SPY & VIX Diverge…
Since January 2012 over 80% of the trading days have seen closing SPY moves of under 1% and yesterday was no exception. Bull markets climb and do so on low volatility as we’ve seen the S&P climb over 40% in 22 months. All the guessing that is going on about the bull market top really […]
Analysts Guessing Top is Near, but…
The market is neutral worldwide and slightly overbought in the US. Volatility continues its downward movement and nearly every part of the market’s behavior is classic bull market behavior. There is an abundance of analysts guessing that a top is near and in every bull market groups like this exist so that they can then […]
Returns Distributions for AAPL, SBUX, FB
The Returns Distribution Histogram, available via the Symbol Search (Quote) section of TradingMarkets Analytics, allows users to see what the simulated historical returns look like for any stock over various periods of time from 1 day to 1 year. These are rolling periods of trading days. Since a year represents 252 trading days, the histogram […]
Money Flowing into High Beta Stocks as End of 2013 Approaches
With the market heading into the final 9 weeks of the year, the majority of hedge funds and long/short funds are badly trailing the averages and they are now chasing. The high beta stocks are attracting a lot of speculative fast money and are trading with bubble-like action (see PRTR). Once all this money gets […]
High-Flying Stocks Diverge
Yesterday I mentioned that Tuesday saw a crack in the momentum stocks and this is usually a sign that a short-term pullback is close. Whenever you see the high-flying stocks diverge for the day as they did on Tuesday, the market shortly follows. Today the market is neutral. There is absolutely no fear in the […]
Don’t Mistake Brains for the Fed’s Artificially Inflated Market
In my previous commentary I said that the scare tactics/lies from both the Democrats and Republicans about the debt ceiling and default etc are just that, but it would be resolved in favor of the market. However, the current resolution is just a stop gap until Feb 2014, and then we get to witness the […]
Market Due for a Pullback
The market remains overbought and due for a pullback after making new highs for four consecutive days. Some of the momentum stocks began to crack yesterday and this is always the first sign that a short-term pullback is very near.. For today’s official Daily Battle Plan set-ups click here.
Will the Jobs Report Prod Volatility
The market remains overbought and yesterday saw the expected pause day that occurs after the market run higher. It’s still very quiet on the news front but the jobs report has the potential to get volatility moving again. We’ll be there should the report cause a short-term pullback. For today’s official Daily Battle Plan set-ups click […]
All Quiet on the News Front
The market is overbought and expect a pause/pullback within a day or so. The weekend was very quiet on the news front and unless something unexpected or out of the ordinary occurs, today will likely be a quiet day. For today’s official Daily Battle Plan set-ups click here.
A Collapse In Volatility Precedes…
The VIX doesn’t often lose 35% of its value in 7 trading days and this is one of those rare occasions. A collapse in volatility is not usually followed by large market declines; in fact it tends to be followed by intermediate-term rallies. If this follows the past, the market will have a short-term pullback […]
Oversold to Overbought and Back Again
The market is back to being slightly overbought today (ConnorsRSI reading of 75) after being slightly oversold yesterday (ConnorsRSI reading of 27). If you looked at only price data, and shut everything else off, everything looks perfectly normal. In an age where the noise gets louder and louder though it’s easy to miss the fact […]
Market Waiting in Neutral
Yesterday’s pullback was obviously due and it brings the market back to neutral position. Everything will continue to be predicated on the events in Washington and the news will control prices for at least a few more days. Look to take advantage of any follow-through on the pullback side. For today’s official Daily Battle Plan […]