Wednesday, January 18, 2012

Trader Update -data point 19 January 2011-

...the bulls in the SPX 500 market, in a serious attempt to win the on-going bull/bear face-off, settled above the *1300 Psych barrier with a *1308.04 Close for the first time in several month. Leaving the 1 August 2011 High *1307.38 and the 29 July 2011 High *1304.16 behind, the immediate attraction higher features the 27 July 2011 High *1316.32 in the strong overhead resistance 'Red Zone'. The Trin *0.55 of the day shows a clear bullish win
...the VIX however, keeps telling a cautious story. Although the 18 January 2012 VIX closed lower *20.89 then the 17 January VIX market, it settled for a higher Low *20.78 and keeps the short term up-trend alive
...a VIX study again highlights a potentially dangerous market condition, featuring a sideways breakout in a descending wedge formation

...although money appears to keep pouring into the market that pushes the market higher, the negative divergence in the VIX tells a story of catious ongoing hedging positions for a substantial fall ahead - as a result, 75% fully invested portfolio protection in place *1301

Kind Regards

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