Thursday, September 20, 2007

Market slides

Qs gave back a little today, but not without a fight. Technicals (especially RSI) point to further declines. First stop is 49th parallel. Historically, September closes poorly (Stock Traders Almanac) with 13 out of the last 16 years posting negative readings for the week following triple witching. Statistical odds favoring the long side pick up considerably starting next Thursday and I'm cherry picking my trades until then.
The VIX had another narrow range day, flashing a doji. The VIX is still over 15% below both the 10 and 20 DSMA and the RSI has now turned up suggesting more of the same to come.
The Qs/VIX RSI signals are in sync and seldom reverse at these levels.

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