Monday, September 13, 2010

Bug, meet Windshield

The bears started out the day hitting the windshield- nothing new there for the past two weeks. The question remains as to whom will get the next turn at the wheel this week.

Not only do we have quad witching this week, but VIX options also expire on Wednesday, so let's keep that in mind while following that chart, too. As you’ll see below, the VIX still has an unfilled gap quite a bit down on the daily chart, however both bucky and TLT filled theirs today. This week doesn't "officially" kick off earnings with the status quo Alcoa announcement, but Thursday we have DFS, FDX, ORCL and RIMM all reporting. FDX is the one I'll be watching closely. Also, as Big mentioned late in the day, BBY reports tomorrow along with retail sales figures before the bell.

Although we have multiple T/A methods telling us there is negative divergence, many cycles hitting here or later in the week, price is still king. If the tape does drop we’ll think we were geniuses, but until then, just follow the bouncing ball and stay safe.

Today was also a POMO day, and we have two more to deal with this week, (Wednesday/Thursday.) While the first few POMOs didn't seem to make an ant hill into a mole hill, there seems to be a pick-up where that's concerned, too. Do you want to fight the Fed? Well, maybe.. but let's use some prudence with the trades we chose because they're obviously hell-bent on keeping the Flying Walendas up on the wire.

Interesting article for you on record high dollar shorts and Euro longs to read through.

“Traders Haven't Been This Short The Dollar, And This Long The Euro, In Years”

Best to us all this week- keep your wits about you, watch each others' backs, and let's make some cash this week. ;-)

vix_9_13 dx_9_13
tlt_9_13 spx_9_13

spx_gann_eod_9_13 Added Osi’s DeMark chart for you

osi dm 9 13

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