Thursday, February 25, 2010

Positive Thinking at Work

This VIX reversal is shown with the Qs, but it applied to all the majors across the board on Wednesday. Bernanke's upbeat comments apparently calmed an otherwise spooked market and, per yesterday's comment, miracles do happen.
This brings to mind my previous Bucket List post and although it was published almost a year ago, I might just as well have penned it yesterday. The XLF continues it's run and my little buddy the SMH, which had been dogging it the past few days, has once again surged. I'm frankly not very enthusiastic about SMH at the current resistance levels though and am standing back waiting for a retracement. More on that later.

Below is the inverse of the situation I noted in Tuesday's post . . in this case the VIX and VXX are both positive along with the rest of the major indices. Tuesday's all red situation resolved in a negative surge for the majors and yesterday's early morning all green dashboard resolved in a positive surge for the majors. I consider this little watchlist a valuable intraday tool as this is a snapshot as of 10:38 am PST. 2 minutes later the VXX turned red and 4 minutes later the VIX turned red, corresponding exactly with the VIXEN cross at 10:40 (white circle). This dashboard alignment is not a frequent occurrence, but when it does show up it's worth some close attention.


Dean K said...

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Love your blog, especially your pairing trades.

Keep it up

bzbtrader said...

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