Friday, February 19, 2010

Rotator and the DIA

The Rotator model has moved DIA to slot #1, although it's probably useful to note that the top three . . DIA, IWM and SPY . . share a relatively similar sort value, so we don't want to place too much emphasis on that #1 position.
In fact, of some interest is the position of the top 3 slots with respect to the LR30 channel . . DIA is effectively at the upper channel band while IWM is slightly below and SPY is hovering at the mean . . thereby suggesting that, despite the top slot position of DIA, it's actually the index most likely to show the greatest weakness in the short term. My old buddy the VIX has once again penetrated below 21 and with each .25 move down in that index the odds for a reversal in the majors increase. We're looking more than a bit long in the tooth after 3 days up this week and I'm in a bearish view for today.

BTW, congrats to local boy Shaun White on his X-Games snowboarding gold medal, making it 3 golds in 3 years. Shaun's a likable character around here who can occasionally be seen tooling around in his new Lamborghini (he wrapped the last one around a tree). While he had been known previously as the Flying Tomato, he has now grown up and chosen to be known simply as "The Animal", as he believes he closely resembles that classic Muppet character. Way to go Shaun.

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