Tuesday, January 27, 2015

Jan 27 - Welcome to the blender

Looks like the market is going to inflict as much pain on both the bulls and bears as possible.  The market has been incredibly whippy making me rethink my XIV position more than a few times in the last few days.  An unusually large gap down did not come close to filling but on fairly low/moderate volume.  After hours the market jumped up quite a bit following AAPL announcements.  Whether the move was to be attributed to that who knows but for most indexes we are sitting right in the middle of consolidation.

I am leaning bullish for tomorrow and intermediate term considering the size of that gap down in SPY.

IWM's daily chart is a mess and today the small caps showed strength, recovering fairly strongly on a large gap down.

HYG (higher risk bonds) once again held fairly strong over its trendline so I am more inclined to see whether a bullish case materializes.  

1 comment:

Declan Fallon said...

Yep - whippy is the operative word - so much noise in the markets. While I think markets will eventually head lower in the short term, if they did manage to emerge higher - no one would believe it - and we know what that means...

May 15 - Closed out IWM puts for +120% and picked up DAL and HD Jun calls

I'm going to let the market do its thing this week and probably stay away from new positions until Friday unless something very good pop...