Housing data was bad BUT indices were NOT interested in going too far down???
TAPE is telling me that there is more UP move coming up...until TAPE gets weak..I am staying put with my rotating trades.......
I know it is extremely hard to follow the TAPE when everyone is glued to CNBC with their exaggerated analysis/noise on a daily basis????
Yes .....most of the Fast Panic Money panel is extremely "fearful & bearish"...but they represent an overwhelming majority of pessimist which is a "contrary" indicator.....@ least to me.....
Market internals were much WEAKER than close..more like 3 to 1 on the downside....BUT that was expected considering bad housing data....
AH SNDK ER was a blowout UP 10.2% AH
AH YHOO was a beat and is UP 5.07% AH
So..what is all this ER telling us? that consumer is alive & well and most companies are "ahead of the curve"
AH Futures are all GREEN
AH Nikkei is down .2%
VIX has tumbled to new 52 wk LOW today @ close..now 20.90 down 2.75% today????
BLOG does NOT give buy or sell.
Saleem
5 comments:
SALEEM
Good Morning my friend
What is the VIX.
I like your positive take on the stock market
thanks for all that you do for us learners!
My GE IMHO is basing with a target of $21 and RSI of 65, it has gotta pop up! Overall GE had fantastic earnings and the DIVI is not bad while I wait!!!!!
Regards
Hi Madmax,
VIX is a volatility index..which was @ 80+ @ the height of meltdown means oversold.
This is an index which measures FEAR in the market...18 is generally considered a low point..means overbought...
Good luck with GE !!!
Saleem
Hi Madmax,
Further on VIX..under current conditions 30+ is oversold & 18- is overbought.....
This is another tool for analyzing market frothiness...but subject to individual interpretation/comfort level.
Saleem
Saleem
here is a VIX summary:
Hence high VIX readings mean investors see significant risk that the market will move sharply, whether downward or upward. The highest VIX readings occur when investors anticipate that huge moves in either direction are likely. Only when investors perceive neither significant downside risk nor significant upside potential will the VIX be low.
Does this seem correct
thanks
Hi Madmax,
I have different interpretation of VIX which i have given.
Saleem
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