This was exactly the type of close I referred to this morning where equities started the day in the green eventually turning red and closing at the lows. A bulls nightmare going into the weekend... Monday and Tuesday could be the bloodbath the markets have been waiting for - but you just never know.
VIX indicates rising fear but nowhere near peak levels... If the markets begin today's session in the green and turn red by days end I would expect a black (blood in the streets) Monday and/or Tuesday. VIX is helpful in identifying the flushing out of sellers.
A close near/at the lows will not bode well for bulls going into Friday and Monday of next week. The markets are extremely vulnerable to rapid declines near term. Watch the VIX for peak levels.
The Bo Polny prediction seems outlandish but every once in a post quadruple blood moon occurrence the metals rear their ugly bullish head and when they do watch for something that resembles a rocket launch. By all appearances precious metals are now pegged and holding for the countdown.
Important support zones are confirmed broken and since the rally from ~ August 2015 has failed to make new highs all points to the possibility that US equities have a confirmed top. Continued selling pressure in the near term will almost certainly target the August 2015 lows.
DIA bounced off of a long term uptrend line that began ~ March 2009. This bullish trend is still in tact however a close below ~ 171 will violate it while breaking the 200 day ema. ~ 171 is likely a critical price level in the near and long term.
agreed, but nothing makes much sense anymore, market could easily do the opposite.
I have a short bias but must concede that no one knows if when or how this market will correct. I've traded long enough to know that much.
If the markets are in a corrective phase CMG could easily drop 100+ points... Gap fill at 442.47 or ~ 150 points from todays close... Longs should be concerned as today's close was quite bearish...
Bubble's always burst and this one will be no different --- 'waiting for the other shoe to drop.'
I checked the QQQ Oct options which almost always have a tight spread; the market isn't open now but it does appear puts are inflated. I'll check again after the open. If this were true; I have no explanation...
I know a lot about options and you're right.... however I have to ask -- how do you know the markets are going to test the August 24th lows within weeks? Options on volatility ETF's could be a great route to go... Options on the VIX itself might be good too however they can be tricky... Please contact me, I'd really appreciate it.
Maybe I'm wrong (see below), but it seems if the rate hike does not occur the markets should rally since; 'it's already priced in'. I'm anxious to load up here favoring a strong move in one direction or the other (downside bias) but I'm not confident. The only thing of which I am certain is the current price formation in relation to the recent decline; bearish. Feel free to chime in...
"It has made the world a safer place for the Fed to do whatever they have to do in the next few weeks," said John Manley, chief equity strategist at Wells Fargo Funds Management in New York. Traders have already priced in the increase, and whether it comes in September, October or December "isn't going to make an enormous difference," he said.