Archive | August, 2011

Life = Risk

31 Aug

DeJa Vu of May 2010

26 Aug

We’ve seen it before.

If you zoom out to a daily you’ll notice it looks very choppy, this is one of the most difficult conditions to trade, just look at May 2010. Stay patient, watch for confirming breakout in the VIX if we do make new lows. A rally to 1225 on the ES before selling off again is possible.

SPY August 2011

SPY August 2011

compared to… SPY May 2010

SPY-May-2010

Small Rally on Low Volume Signals More Downside

17 Aug

Heavy Selling on Heavy Volume, What’s Next?

8 Aug

We saw heavy selling these passed two weeks on increasing volume. Look to sell into any rally if we see a decline in volume. A true rally will coincide with a massive drop in the VIX.

Above we have the four top line figures, SPY, DIA, QQQ, and IWM (from left to right). Notice the increasing volume noted by the darker green and the incredibly large percent down days in the markets.