There’s no denying that the market was overextended as a result of last week’s Fed decision. So far this week we’ve seen a small pullback in price while many of the short-term indicators have worked off their overbought readings. As long as price stays above the 5-day SMA and the net delta leaning bullish for
Tag: $vix
Two days into the new week and the bulls and bears have taken the gloves off. Monday saw the major indices print new multi-year lows on decent volume. The bears threw the first punch. It was countered today though with the bulls getting up off the canvas and breaking out to some intra-day highs just
Decent overnight moves higher in the futures fell flat on their arse today as the selling pressure ensued. With tomorrow being options expiration it wouldn’t be too surprising to see some squeezing on the puts early in the day. However, in this market environment anything is possible even the Dow closing at 6 year lows!
Are we seriously pinning our hopes on another financial bailout; seriously? Last time I checked it wasn’t up to one person to pass legislation but I’ll check on that and get back with you. Based on that hope though, the major indices rallied off of the lows. Now, those lows were in place because of
Wal-Mart ($WMT) put a little fear in the futures pre-market this morning ahead of the weekly jobless claims. Same store sales for Wal-Mart rose 1.7% for December while analysts were expecting more at 2.8%. Add to that a drop in their earnings forecast by $0.12 and you get a 7.5% drop on the day. It
The FOMC meeting minutes were released this afternoon and it shows no sign of an improving economy any time soon. With the Fed rate at historic lows “at or near zero,” we’ve seen mortgage rates drop to 5.1%. That level hasn’t been seen since 1971 and it appears as though the Fed believes that rates
2008 will no doubt be an indelible image burned in the brains of many, both in and out of the market. The Dow Jones Industrial Average lost 35% this year, the third worst ever, as the worst was a decline of 52.7% in 1931. For the Nasdaq, this year’s loss of 41.5% is the index’s
$GE is being largely blamed for the downside movement today in the equities market as it was hit with a negative ratings outlook. The stock itself lost about 8% with greater than average volume today. The major indices all closed lower with the Dow losing nearly 2.5% followed by the S&P 500 with a 2%
The major indices finally gave in to the bad economic data out there and the probable failure of the automobile industry bailout bill in the Senate. If the recent gains that have occurred in the market are due to the belief that congress would pass the auto bill and it looks as though it won’t
Market View
I mainly focus on the SPX in my analysis as that’s what I trade. Here’s some charts that caught my eye this weekend. Keep in mind that we have the FOMC Wednesday afternoon and the bullish tendency that accompanies that day. If Monday is a down day I’d expect it to be bought up going