I may be a bit early but I went short the market just now. Things look a bit toppy and so far the reversal looks quite convincing. I went long the VXX 17 October Calls and also the TZA ETF just now. I am officially re activating the BOT short signal right now. The volume … Read more
I just completed a brief volume analysis of the SPY ETF since the April 2010 top. It helps provide some more clarity to the market phases since that time. I have to admit that the current volume picture of the SPY ETF is not very encouraging for a continued advance. The PRICE advance in the … Read more
Today was an inside day in the sp500. The price range was small and the market was not hinting at any big moves in either direction. The last four days appears to be a simple pause in the uptrend. Tomorrow if we are able to hold 1140 or higher then I have to presume that … Read more
With the fed decision out of the way, the market is only showing very limited weakness and it appears the squeeze that began yesterday is in continuation mode today. The persistence of the current rally brings on the temptation to think that it is unsustainable. But keep in mind that yesterday was a sign of … Read more
The SPY got a confirmed bullish break above the 113 resistance level. The volume on the SPY was the robust but by no means record volume. I would have liked to have seen a 320 million share day on the SPY ETF instead of 217 million. Still the SPY ETF did show a very strong … Read more
The Russell 2000 Index is going to show us the true direction next week. I find it very interesting how we closed the week today. Low volume, very narrow range, and no real clue about the markets intentions going into next week. I suspect that we will finally start to see some real volume again … Read more
The SPY ETF is still trading in a large trading range and is taking the shape of a symmetrical triangle. Volume was still very light today and no real conviction in either direction. I still suspect that we are going to trade down once again to the apex of the triangle before making any firm … Read more
There has been a lot of talk about the head and shoulders topping formation in the broad market indices in construction since November of 2009. Head and shoulders patterns are reliable patterns but they are definitely not guaranteed. Sometimes they do fail. I believe this one will fail because it does not have enough symmetry … Read more
The sp500 today pulled back on very light volume after the previous three day price surge and sign of strength. It appears that the early part of this week will still be somewhat light on the volume side which would fit in well with a bullish topside breakout scenario. It would fit well because I … Read more
Today we saw big price destruction in the sp500 which gave back a good portion of the hard earned gains of last Friday’s reversal. I was looking for a confirmation of last Friday’s bullish reversal today but clearly we did not get anything close to a confirmation today. Instead we got a deep retracement that … Read more