The collision of global markets and social mood

Tuesday, February 14, 2012

The Prospect For Disharmony

A few days ago I mentioned non confirmations. As of this morning, we've still got a great big one. The S&P still has not confirmed the Dow and the NASDAQ by getting above its May highs. The longer we wait, the more the pressure builds. 500 large cap stocks are saying they're tired at these levels. Futures made a run for the 1350s last night, and only made it to 1352. 1352.25 is still sitting there, untouched. This is the biggest thing on my mind right now.

Another thing is that I often have a bad habit of only looking at the Dow, NASDAQ, and Russell charts from a daily perspective. I totally missed the Dow's beautiful 5-wave pattern down last Thursday morning, which was unconfirmed yet again by the S&P, and part of the reason why I was still looking for another high and dumped those OEX puts that would have made my weekend.

Until there is harmony in these markets brought on by 1370.58 in the S&P, the prospect for disharmony is very large. Anything below Friday's lows will start sounding like heavy metal.
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6 comments:

  1. AnonymousFebruary 14, 2012 at 12:50 PM

    so no trading plan today? or in a holding pattern. i'm still playing around with TVIX. a real percentage/price performer when compared to FAZ, and i love the volume. k

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  2. Marz BonfireFebruary 14, 2012 at 1:32 PM

    had my hands full with crude. S&P feeling very middle-of-the-page today. so far just one trade with SPY 135 calls (now flat). still think higher unless 1337.35 breaks. yeah, that TVIX is a fun little ride.

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  3. AnonymousFebruary 14, 2012 at 1:56 PM

    i'm short crude and the trading range has been torture. spx, maybe higher, maybe rolling over, it's still a currency thing in my mind. i'm not quite ready to join the new world order. k

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  4. Marz BonfireFebruary 14, 2012 at 2:23 PM

    great comment about the currency thing. totally think most miss that.

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  5. AnonymousFebruary 14, 2012 at 2:39 PM

    and then i really get stuck on the whole bot/algo thing.. look at the % downs of the spx, naz and dow.. two are perfectly in sink and the the spx barely a tenth off. it is often that way.. especially on no volume days. did i mention i'm not an HFT fan? k

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  6. Marz BonfireFebruary 14, 2012 at 3:19 PM

    haha, not a bot fan either. hft makes me laugh. mkts are infinitely larger than computers and the quants who program them.

    ReplyDelete

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