Month: July 2009

Buywrite vs Index ($BXM : $SPX)

BXM:SPX compares the relative performance of selling S&P 500 covered calls against holding the equity unhedged. When buywriting outperforms the underlying index, it implies that the market is weak because option writers are keeping premiums as strikes remain out of the money. Since the credit crisis began in late 2007, the relative strength of BXM…


NYSE Summation Index ($NYSI)

The NYSE Summation Index continues to move lower, signaling persistent selling pressure and broad market weakness. Until this indicator reverses and heads higher, the market will continue to liquidate, potentially taking us to the March lows. Stay defensive and manage your risks by cutting loses quickly.


Quote Corner

Prosperity is a great teacher; adversity a greater. – William Hazlitt (English essayist, 1778-1830)


Typography

[vodpod id=Groupvideo.2934289&w=425&h=350&fv=clip_id%3D3829682%26server%3Dvimeo.com%26autoplay%3D0%26fullscreen%3D1%26md5%3D0%26show_portrait%3D0%26show_title%3D0%26show_byline%3D0%26context%3Duser%3A786396%26context_id%3D%26force_embed%3D0%26multimoog%3D%26color%3D00ADEF%26force_info%3Dundefined] more about “Typography“, posted with vodpod


Twitter Ticker ($C)

StockTwits is buzzing about $AIG, but since that mess was discussed here last week, it’s time to look at another financial player, Citigroup. The last post on C is here, made on March 10th, suggesting a 120% rally in the works. C continues to enjoy the benefits of an uptrend, but after issuing a sell…


Twitter Ticker ($AA)

With Alcoa’s numbers out, StockTwits is tracking AA as it trades higher on a “smaller than expected loss.” Though AA technically remains in an uptrend, the 20sma is not rising, and it trades below a declining upper Bollinger. Should 8.33 fail to hold, things will get nasty for the embattled aluminum producer. According to this…


Quote Corner

I keep hearing “Should I buy? Should I buy?” When I start hearing “Should I sell?” that’s the bottom. – Nick Moore (Portfolio manager, Jurika & Voyles, TheStreet.com, March 12, 2001)


S&P 500 Bullidex ($ES_F $SPY $SPX)

Things look grim for the S&P 500 as the Bullidex fell 8.45% to close at 169, breaking the June low. This is a big warning sign to all equity investors as the volatility increases relative to the number of rising stocks, which lowers the probability of successful investment. Bull markets tend to see a reduction…


Twitter Ticker ($UNG)

UNG trading was halted this afternoon, only to reopen lower a few minutes later, causing quite a stir on StockTwits. The hearings on commodity trading may lead to limits on speculator positions, but it isn’t a piece of trade worthy information, price is the only thing that needs to be followed. The scenario I envisioned…


Quote Corner

The market can stay irrational longer than you can stay solvent. – John Maynard Keynes (British economist, 1883-1946)