Disclaimer: The information found on this site is meant for educational and informational purposes only. Nothing on this site should be construed as a recommendation or solicitation to buy or sell derivatives or securities or to trade any particular strategy. Trading of derivatives or securities has large potential risk and you must be aware of and accept all the risks. Past performance of any trading system or methodology is not necessarily indicative of future results. No representation is being made that any account will or is likely to achieve performance results similar to those discussed on this website. Hypothetical or simulated performance results have certain limitations and do not represent actual trading.

Tuesday, June 15, 2010

Technical Snapshot of SPY

-Overall market has seen a strong rebound from SPY level of 105 to close at 112.0 today. Although expected, the speed of the rebound has been much stronger than I had thought several days ago.
-Two indicators of fear, VIX & the strength of the US Dollar have both come down considerably, as indicated by my volatility chart on SPY and price of UUP (ETF that seeks to track the price and yield performance of the US Dollar against major currencies).
-I still feel as though it is too early to turn bullish on the overall market, but I am adjusting the trading range going forward to 108.4 to 115.3 from 105 to 111. SPY 112.0 is right at the middle of my expected trading range. Furthermore, according to my model, implied volatility, that has fallen to current levels (23 in SPY) is no longer overvalued. Market chaos equates to market opportunity, but that chaotic energy has dissipated. At current levels, I do not have a strong bias to direction of the overall market, either in price or volatility. Finding trading strategies that produce quick profits would be difficult for the time being, but I will still try to find individual stock names for you.

No comments:

Post a Comment