Greece was given its 3rd bailout, the market digested China currency devaluations, yet in reality nothing was resolved. We continue to get mixed signals. It's a market with more than enough reasons to pull back,
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Tag Archives: VIX
Still Breathing
What else can you say after a day like today? This morning in the chat room I stated how perfect it would be to see my big $IWM $120 figure before the close. That was my key support/resistance line I have been talking about for all of 2015. Last nights recap was titled "Till Support Do Us Part" for a reason.
Once we broke support it was a time to part from the bullish stance. But with today's action, the support is there, and the bullish perspective is still here to live another day.
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Bearish Options Activity
Over the last few days, while there has not been a big S&P 500 move, there has been a lot of bearish options activity. Currently the S&P 500 is below 2100, a level that represents the uptrend line from February. It is concerning that we are below it because it could signal a short-term top in the market. What has come along with this break is a flurry of VIX call buying for June and July. Now while most call buying in the VIX tends to be for hedging these purchases were at the 17 and 18 strike. This leads me to believe that these speculators are betting that the Fed meeting next week will spark a sell-off. After Friday's strong job report it increases the likelihood of a hawkish statement.
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Tuesdays Gone With the Wind
Another Tuesday Trading Session in the books. While the media likes to give an exact reason why the S&P500 and DJIA hit record highs, I'm pretty sure stocks were going to head higher even if Yellen did not speak today.
Courtesy of CNBC.com:
Home Depot blasted to new lifetime highs today after reporting earnings that impressed investors. They also announced an $18 billion share repurchase program.
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Is the Real Breakdown Coming, or is this Another Fake-out?
Today the S&P 500 had a range of over 2%, starting out the day up .7%, only to then close down 1.3%. Most, including myself, thought that the incredible AAPL earnings would have given way to a strong session for the broader market. It sure seemed like it would at 11pm last night when the S&P futures were up 1% and the Nasdaq futures were up 1.5%. However, the “sell-the-rip” theme came back into play overnight and throughout the morning. Today’s session tells us a few very important thing about the weeks to come for the broader market.
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