I posted this chart last month showing the TL on the monthly that gave the $SPX a reaction in 10/02',3/03',9/08'. It never got there last month. Well $SPX made it to the TL today. We'll see what kind of reaction it causes. http://www.flickr.com/photos/47091634@N04/45064…
One of my lesson learned from this debacle is to take history in context. Yes, there are way too many call buyers and we should have corrected.
I lump the P/C ratio in with McC Osc, Summation as breadth indicators. Markets can hold their breath for a long time. Pun intended 🙂
This morning, for a short while, number of declining stocks and their corresponding volume was up and the NDX was dropping. Erin B on CNBC hesitated and said “that can't be right but I guess it is.”
For some reason, the link didn't transfer correctly. Go to the bottom of the page, choose “all equities only”, keep only the 10 day moving average, and then date it back to before the crash in 2007.
Markets can only continue in an “overbought” state while money is coming in “from the sidelines” to chase gains. I.e. they can be persistently overbought while fresh liquidity is introduced into the system.
Ugh. I remember that week. I got whipsawed to hell and back again. The next week, the markets melted up throughout the low-volume Thanksgiving week, and then Dec. 1st was a massive 7% down day. Faz was +40% in one day!
I don't know what the best way to chart this (see link) but I know that we are at the ISEE levels and the 10 day moving level average (mole has said why this is significant) not yet seen since before the crash in 2007. Thoughts anyone? http://www.ise.com/WebForm/viewPage.aspx?catego…
$SPX ~1194.91
I posted this chart last month showing the TL on the monthly that gave the $SPX a reaction in 10/02',3/03',9/08'. It never got there last month. Well $SPX made it to the TL today. We'll see what kind of reaction it causes.
http://www.flickr.com/photos/47091634@N04/45064…
Yes, I have puts that are at the 117 strike price. I'm averaged in at about 60 cents, so I would need 116.40 to breakeven.
Hi Monica!
One of my lesson learned from this debacle is to take history in context. Yes, there are way too many call buyers and we should have corrected.
I lump the P/C ratio in with McC Osc, Summation as breadth indicators. Markets can hold their breath for a long time. Pun intended 🙂
This morning, for a short while, number of declining stocks and their corresponding volume was up and the NDX was dropping. Erin B on CNBC hesitated and said “that can't be right but I guess it is.”
Interesting.
don't you only need the $SPX to close below 1170 by next friday
problems in paradise for the bulls
“fresh liquidity” …must be all those puts me and Monica have been buying! LOL
For some reason, the link didn't transfer correctly. Go to the bottom of the page, choose “all equities only”, keep only the 10 day moving average, and then date it back to before the crash in 2007.
Markets can only continue in an “overbought” state while money is coming in “from the sidelines” to chase gains. I.e. they can be persistently overbought while fresh liquidity is introduced into the system.
Ugh. I remember that week. I got whipsawed to hell and back again. The next week, the markets melted up throughout the low-volume Thanksgiving week, and then Dec. 1st was a massive 7% down day. Faz was +40% in one day!
I don't know what the best way to chart this (see link) but I know that we are at the ISEE levels and the 10 day moving level average (mole has said why this is significant) not yet seen since before the crash in 2007. Thoughts anyone?
http://www.ise.com/WebForm/viewPage.aspx?catego…