Friday, July 16, 2010

The Pain Machine

The TLT did show it's stuff today as the VIX executed the runup forecast earlier in the week. The afternoon session was divergent with both the SSO and VIX maintaining a downslope on 5 minute bars. Surprisingly, with an average downturn of over 2.5 % in each of the majors, the NYAD never got below .18. Selling of this virulence is typically accompanied by NYAD levels more around .10 and a preliminary conclusion to be drawn is that there more downside to come. The biggest volume day in BAC since May reflected a 9% loss while most of the financials including XLF saw +/- 4% hits . . with the glaring exception of GS, which was actually up 2 % at one point before plunging into the close.
Monday could be a doozey and I'm glad to have both oars in the boat and flat at the close.

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