Monday, September 15, 2008

Red Monday

A number of volume records today, with the Qs building downside volume and momentum early on. Is this the awaited selloff? The only problem with that theory is the lack of rebound into the close, althought the Qs have recovered a little bit after hours. Typically the markets exhibit at least a hint of a reversal at the bottoms and that was not the case going into this close. Did I mention in the previous post that I was expecting volatility to expand this week. That might be a bit of an understatement, with the VIX jumping over 6 points today.
Below the NYAD and the reason that long positions today were a risky bet. When it starts at .o4, that should be a solid clue that this gap down might not fill.
Being the perennial optimist that I am and with several of the Dirty Dozen systems firing BUY signals, I went long the Qs Oct OTMs 15 seconds before the close.

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