Tonight CNBC Cramer showed 4 charts based on Technical analyst Bob Lang who likes the following four evidences:
1) Too many Put Option buying in crude oil future was extreme 5:1 Put:Call buying last Friday. Too many bears
2) Several Years of Strong Stock Market during cheaper oil which drives Higher Profit (Higher Demand from Consumers; lower fuel cost; lower packaging cost)
Year.....Crude Oil....... SP500
3) Velocity of decline had frightened people. When velocity disappears the confidence returns, and the market rallies.
4) CBOE Volatility Ratio of 30 Days to 90Days: . the VIX to VXV
Whenever this ratio is over 1 it signals a major rally is begun. Every time it did this in 2014 the market rallied sharply. Yesterday Tuesday it went over 1. Today Wednesday it moved higher. The last 5 years the VIX has gone above VXV 14 times. One month afterward the SP has been up 12 of 14 times.
Medium-Term the SP500 should resume its climb higher as it has many other times.
Fed Announced Patience with "Same Outlook of Extended Period" of continued low rates.
S&P500 STRONGEST PRICE RISE Today of 2014 with 140% Bullish VolumeBuzz.
McClellon Oscillator Index T2106 up 66% heads toward normal
VIX Volatility Index Fell -17.5%.
Oracle ORCL +5% Afterhours..BEATS on Revenue +3%..Cloud Rev +45%..and Profit.
Tech Demand Growing first time in several quarters.
AK Steel AKS +6% Afterhours...GUIDED UP Profit Expectations...Reported 37% Stronger Demand Quarter-to-Quarter from Consumer Autos & cheap fuel cost
As Consumers Enriched with best gas price in 8 years. Halo effect and higher guidance is cimibg for MU and Tech as enriched consumers boost retail.
400+ million PC Laptops readying for upgrading. ..
Signal a Turning Point:
$DJIA -100 +300 -300 = 700 point gyration
$VIX +2.5 -6 +4 = 12 points gyration
Oil stocks green today some up 4%
Crude Oil Price Oil down then up to finish up 2cents....total gyration $3.55 says marketwatch site
Reuters News reports Russia in recent days are "making movement" out of Ukraine...Kerry signaled "If Putin continues this movement toward peace, the West and US will quickly remove sanctions."
Volatility VIX MoneyStream Peaked at 12 Noon...then Rolldown to Tues Dec 9 level..
Most of Today Was Below 50tick Average Line for the First Time Since Dec5...Moneystream closed at Low of Day.
"Real Silver Lining of falling oil prices" on CNBC site shows the overwhelmingly positive benefits to Corporations and Consumers......as Strong "King" Dollar cheapens oil price and boosts the economy
VIX inversion has begun with moneyflow begun to falter this afternoon. CNBC just said to watch for "VIX Inversion which is very close".
VIXY short term VIX futures dropped dramatically afterhours.
VIX-M medium term begun to falter lower than VIX-Y short term shows inverted VIX curve.
VIX begun to blow its top.
Consumer Sentiment STRONGEST 8 Years with latest reading at 93.8 BEAT 89.5 estimate.
Improving Jobs, Wages, and Energy Savings are Tailwinds.....
since the CEO was announced Zhone's stock price and shareholder value has fallen to 49% of the price in July. Has lost just over half of the company value.
Maybe now the CEO will start to "pay attention to the stock price" which he said a couple of months ago that he didn't really watch the shareholder total value saying "it's in the $3's"...
Mr. CEO the stock price has lost over 1/2 of shareholder value. It's below the $2s.
Shareholder Value wealth creation is the #1 purpose of a CEO. This CEO has allowed ZHNE market cap to fall in 1/2 in 5 months.
Where's the beef ? How much longer will this go on?