Thursday, August 23, 2007

Qs stumble; VIX oversold

The BAC move to prop up CFC had only an overnight impact as the pop fizzled at the Open. Woe to the after hours traders who paid up to a $5 premium on yesterday's CFC close in anticipation of a bigger pop today. The perception of a looming major financial crisis was evident today with the lack of market strength and/or direction. The markets seem poised awaiting the next shoe to drop.
The Qs strength couldn't carry though today after the Open, and after stumbling around much of the day, finished again at the 20DSMA on volume close to yesterday. Not a lot to note today in the Qs other than the overbought dinky top.
The VIX is flashing an oversold signal, still hanging 10% below the 20 DMSA.

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