I don’t usually get into the technicals this deeply, but right now I am looking for anything that will give me an edge – I am down to candlestick patterns today. So what I have below is a chart of the VIX against the S&P 500 and I see a Hanging Man on the S&P (usually a bearish reversal candle) and an Inverted Hammer on the VIX (a bullish reversal candle). Considering all the bearish positions I have for this week, this is a hopeful sign for me. Or, am I reading my desires into the charts? Hmmm…
Some big retailers came out with earnings today and reported slightly better than expected but gave cautious guidance for the the next quarter. The indexes didn’t know what to do with that so they effectively did nothing.
Then there’s the Basic Materials sector – what’s with that? I had a Bear Call on POT that blew me away today. Fortunately it I got out of the short call early today and hung on to the long call. When I looked at it an hour later, I was in a profitable position and I sold the Call. These stocks are not supposed to move like that, are they? I mean, isn’t this a Buffet-like company?
Don’t come to me looking for advice – I just don’t know what to say. I have a hard time seeing the VIX at 22 with this type of stuff going on. Expiration should be a real trip this week. Good luck to everyone!
Oh, by the way, I posted a new video that was too long for YouTube (it’s about 15 min) – you can find it at the top of the download list. If you watch it I would appreciate your comments on the quality of the image and if it streamed OK. I’m also curious if you Mac’s out there could view it OK.
Thanks for reading. Your comments/suggestions/corrections are always welcome.
- Jeff
