Possible Top?
The VIX has returned to its
“floor” level of the past year. Note that when the VIX dropped to this
level last May, it coincided with an
intermediate-term peak in the market.
And studying the price chart for the Dow, this advance has
been very similar to that of last spring in terms of magnitude and duration.
Am I calling a top? Not
necessarily. I am just saying that we
need to be careful here. The pattern
match is striking and could be significant.
Futures options
I don’t usually comment on futures options, but right now
the energy complex (CL, HO, HU and NG) has extraordinarily expensive options.
Traders able to take on some risk should be able to find a way to profit
from selling these.
And implied volatility on the Eurodollar (ED) is off the
charts! Again, these expensive options
could be sold.
Editorial on Telecom
Telecom companies deserve a big share of the blame for
pulling the economy down into its current recession.Telecom companies are flat out screwed up.
Just about everybody I know is unhappy with their telecom service.
I understand AT&T recently cut off 4.1 million people from accessing
the At Home cable modem service, apparently over a negotiation impasse. They
had the power to pull the plug, and they used it!)
On a personal level, my mother has gone around and around with her cell
phone company. I find my own cell phone
service has many warts. Everybody knows
that DSL is a nightmare.
People are SO ready for good, solid communications
services, it’s like a body of water building up pressure behind a dam.
That’s why I’m on the lookout for a good, new telecom company to come
along. Especially one that gives home
users fast reliable Internet access. That
will be the stock of this century.