Market Soapbox 08/09/05
Resistance: DJIA 10750; SP500 1250; Nasdaq 2200; NDX 1625
Support: DJIA 10500 ; SP500 1210 ; Nasdaq 2100; NDX 1535
European markets & Asian markets up. Dollar down vs. Yen/Euro , oil, commodities & gold down, bonds slightly up.
Today's Soohey Pig Award goes to me for letting the pig have a quiet day in its poke.
A large gap up and then a sideways day on higher volume. The markets whipsawed from 2:30 till closing. There was suspicious weakness in the RUT & MID and the XAX AMEX diverged with the major markets again.
Oil pulled back after almost hitting $64 per barrel. The XOI, XAU, Energy, Oil, Natural Gas, Airlines, Oil Services, and Semi Mfg closed down or were down most of the day.
Yesterday mornings head fake turned into todays gap up. The FOMC meeting gave a 25 basis point increase and forward looking statements from Uncle Al which indicated no pause and more increases.
Tomorrow, 5 year note auction and options unwind; Thursday 10 year note auction, these will test the markets liquidity and stamina.
Something that should be investigated is buying futures in the VXD (DJIA) and VIX (SP500), these indices measure volatility in the associated indices options. They both hit ALL TIME lows on July 20th.
This means theres no fear in the market, and thats when you should worry the most. Since the 20th, volatility has increased by 20 - 25% (a nice profit on the futures), and the VIX/VXD futures are still buys at these prices.
Whether it be geopolitical mania buying or panic selling, we believe volatility will be on the rise in the markets prior to year end. Go here for further info and call your broker.
We take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong.
Support: DJIA 10500 ; SP500 1210 ; Nasdaq 2100; NDX 1535
European markets & Asian markets up. Dollar down vs. Yen/Euro , oil, commodities & gold down, bonds slightly up.
Today's Soohey Pig Award goes to me for letting the pig have a quiet day in its poke.
A large gap up and then a sideways day on higher volume. The markets whipsawed from 2:30 till closing. There was suspicious weakness in the RUT & MID and the XAX AMEX diverged with the major markets again.
Oil pulled back after almost hitting $64 per barrel. The XOI, XAU, Energy, Oil, Natural Gas, Airlines, Oil Services, and Semi Mfg closed down or were down most of the day.
Yesterday mornings head fake turned into todays gap up. The FOMC meeting gave a 25 basis point increase and forward looking statements from Uncle Al which indicated no pause and more increases.
Tomorrow, 5 year note auction and options unwind; Thursday 10 year note auction, these will test the markets liquidity and stamina.
Something that should be investigated is buying futures in the VXD (DJIA) and VIX (SP500), these indices measure volatility in the associated indices options. They both hit ALL TIME lows on July 20th.
This means theres no fear in the market, and thats when you should worry the most. Since the 20th, volatility has increased by 20 - 25% (a nice profit on the futures), and the VIX/VXD futures are still buys at these prices.
Whether it be geopolitical mania buying or panic selling, we believe volatility will be on the rise in the markets prior to year end. Go here for further info and call your broker.
We take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong.
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