SPX made a weaker retest of the upper trendline of its Orthodox Broadening Top, but could not breach its weekly Cycle Top support at 2254.56. A decline beneath the Cycle Top support gives the SPX a sell signal.
VIX-leveraged ETFs are designed, without flaw of construction or natural human interaction, to decay in price over time. In short, these instruments and volatility in all forms are meant to be shorted by traders/investors.
Friday, January 20, 2017 5:10 AM EST
Today, T2108 took another plunge – this time dropping from 61.4% to 55.2%. This position is the lowest close in over two months and motivated my switch from “cautiously bearish” to “bearish” for the short-term trading call.
Thursday, January 19, 2017 9:27 PM EST
Stocks slipped again, as the Dow Industrial Average fell for a 5th straight day, down about 300 points from all-time highs reached two-weeks ago (1/6) and at 6-week lows heading into tomorrow’s Presidential inauguration.
Wednesday, January 18, 2017 4:55 AM EST
The market appears to be waiting for something, and it is not clear what that “something" is, as analysis is not giving clear signs. The inauguration is Friday which is an important event and markets usually pivot around events.
Tuesday, January 17, 2017 10:29 PM EST
Today the Volatility Index jumped over 7% after reaching its lowest level since July 2014 on Friday. Financials led the S&P 500 lower, the recent market leaders, led the decline as investors fled to Bonds driving yields lower.
One measure of uncertainty that economists sometimes look at is VIX, which is a measure of the square root of the variance of next month’s stock returns as inferred by the prices of stock options that will pay off if there's a big change up or down.
The VIX climbed more than 11% on Thursday, marking its sharpest daily rise since November 3, 2016. This implies that risks are rising and investors could definitely benefit from this trend from several ETF/ETN options available.
SPX declined to its weekly Cycle Top support at 2249.08 before bouncing to the upper trend line of the larger Orthodox Broadening Top. A decline beneath the Cycle Top support at 2249.08 gives the SPX a sell signal.