Sorry for the delay, but had a few steaks ready for the grill and had to attend to them.
I fully expected a big flush at the end of the day and I'm surprised that it did not happen given the past few weeks. Overall action was volatile, with the Vix still up, however down for the day from it's high.
Maybe - just maybe - the trend has reversed again.
I played SQNM, and am watching it now in AH.
Hope everyone made some money today and will do so tomorrow. Regulars, please post your results and star this up!
Thanks Cosmic :-)
Played with FAS and DGP today. Have I said that I love this volatility?
Sold covered call on GLD and ASA :-) Yes, you can officially call me "gold digger". I LOVE my gold stocks!!!
You make a very good point, Dual. It is worrisome when even CNBC is talking about the "correction". I thought corrections came in the "dark of night." So many are now short, it wouldn't take much of a fuse.
(........................then the correction)
Sold 7000 shares LVS for small gain on the pop near EOD and later repurchased 5000 at 15. Holding 18,300 shares LVS waiting for payday (but not so patiently right now as Citigroup showed some strenght today and is tempting at 4 or so). Must watch MGM on Thursday as a bad report may adversely impact this sector. Also, I don't anticipate a great report from MGM due to heavy reliance on Las Vegas. Gosh if only this was easy. GL all on Wednesday.
'Anyway -now we have a bunch of bears sitting on top of potentially a powder keg if buyers step in and or the high frequency trading programmed trading faction chooses to run it up... '
torre, i very much agree with the above statement. sharp manipulated moves cut both ways. and you are right, this thing could run up sharply once the worry issues are behind us. how vix behaves tomorrow will be very telling
The way I interpreted it was high frequency trading programmed trading which in and of itself causes volume to be deceptive e.g. buying and selling 100 share blocks over and over again...
The programmed trading drove down the market on low volume with bulls already in positions and market at resistance there were not many bulls buying versus bears selling...
Anyway -now we have a bunch of bears sitting on top of potentially a powder keg if buyers step in and or the high frequency trading programmed trading faction chooses to run it up...
Thanks dual but what I need are heuristic rules about market breadth that are simple enough for me to understand the significance of something like, for example cash's "When the MACD crosses the EMA like that you're screwed." (Well not in her words exactly but you get my drift).
So the explanation tells me what it is - what I need to understand is what are the good signs using it and what are the bad.
I'm not asking you to go into it right here partner - I do appreciate the help from you and all the others.
I'm just a little frustrated at this point - nevermind...this too shall pass.
brosin wrote:How are you interpreting it?
Massive profit taking, redemptions, ..?
now here cosmic may have better answers because of his intimate knowledge of mutual funds.
but this last selloff to me looks like it was a confluence of CIT, FOMC announcement, and some option activity screw up.
but i think cosmic believes that redemptions were a contibuting factor as well.
i can try to explain it a little more plainly but perhaps not precisely.
the oscillator is essentially based on market breadth. Breadth refers to the number of stocks that are up vs the number of stocks that down on the day.
it doesnt care how much a stock is up or down, just the plurality of advancing stocks to declining stocks.
once a tally of advancers minus decliners are caluculated, the (exponential) moving averages over a 19 and 39 day are computed.
the difference in the 39 and 19 day ema of thh breadth is the oscillator reading.
summation index is easy. it is a running total of the oscillator from one day to the next. when the oscillator is +, summation index is sloping up, and vice versa.