I think that $RVX ($RUT's Volatility index) is still cheap with relatively low momentum compared to all other indexes. Today I will be looking into going long $RVX and possibly shorting $SPX or $NDX.
About a year ago I was discussing with some friends that we were happy that we didn't buy in on Facebook's IPO. However, yesterday $FB hit a new record high and investors are just waiting for it to hit a $100.
But with recent acquisitions (such as whatsapp) investor should hope that Facebook find a way of adding marketing to the service without just moving users from one app to another similar one. Because lets face it, they spent $19 Billion on the service.
The latest news are that Facebook are considering acquiring a drone maker (according to CNBC), Titan Aerospace for $60 million.
I guess the Russians not invading the Ukraine is enough for new all-time highs in the SPX. The thing I am looking for is what is on the horizon that will make implied volatility move next. Most likely that is the employment numbers this week.
However, we had have had some unusual options volume today with $SUNE options volume up 52% +!!!
Haven't been hating on any particular stock lately so I figured I share Tesla's fundamentals with you.
Tesla hit $258 a share today, up 614% YTD
How is it possible that a company is up that much when they still doesn't make money?
I cant tell you that except that I am very certain that someone will make a ton of $$$ shorting this bad-boy within the upcoming year. If you don't trust me please check for your self. My favorite is that EPS is -.136
It is stocks like this that I try to stay away from because I can't just look at momentum, but if you have been long $TSLA the last year I can only take of my hat for you...
Sometimes, a few weeks after earnings investors get crazy and start selling off AAPL option premiums to insanely low quotes. Check out this VXAPL chart (The VIX of AAPL)
After last week’s shortened holiday week, the market is off to a strong start in the first part of Monday’s session. The SPX traded up over 20 points, with a P/C ratio of around 1.5.
Market is up to a new high and VIX is down. Opening up some really good buy opportunities for the next 4 trading sessions
The last week we have been trading right underneath the all time highs and what seems to be a very resistance line. Another drop is probably coming up. The bulls have been really aggressive since the last drop and i expect just as much by the bears this week.. Late friday we saw a start on a drop 5 min before closing with a really bearish candle stick to sum up the day. We also broke threw the 20 day moving average, stochastic and MACD also look like its ready to drop.
The last week the VIX index reached new lows and have been trading relatively flat. the last few days just like the SPX. According to my analysis a I think a strategy with a high delta and vega will be a good trade here. We still have a possible risk on the downside so I would consider a
It has been an interesting week with bad earning reports from companies, manipulated data and the stock market have been rallying... we are almost up at the highs with only a few point to go. I am thinking that we will probably see a new high by the end of this week. Today I am pretty sure the market will open relatively flat to a moderate gain. Seems like the other markets have been worried about how $SPX will open. The technichals look bullish but the fundamentals look bearish. Cant make much of an assumption other then that if you decide to go long make sure you set a stop on your losses. We are also having support by a strong pivot. If $SPX opens below that we may want to expect a start of another down trend.
The $VIX have just been falling way above its limits and it seems to be no doubt that investors are still bullish. Currently I would ho with relatively neutral strategies because I dont see how the $VIX can fall much more. When the historical vol have decreased I would look into some more bullish strategies.
Welcome to the most hated bull market..!
I did not expect this this slow recovery in the market Thursday-Friday last week. Currently we are trading at a resistance line from Thursday 2 weeks ago it looks relatively strong but the opening Monday will be very critical. If we pass this line we will probably see a relatively quick recovery and maybe even make another high withing the last few weeks. As I still hope for stronger pullback I still believe that the market opens down.or possibly flat. MACD looks like it ready to reverse but SAR, pivots looks bullish and we are still trading over the 20 day moving average.
Because a short term $VIX chart didn't tell me much (except the obvious, that it has been falling and you can read about that at any other blog). What is interesting at this chart is that we are currently at a support line from the first pullback in the market from the 4th trading session of this year. MACD is also very bullish and if $SPX opens below Fridays close we will probably see a big move in the $VIX.
Monday will be a very interesting day...
Two days ago, the S&P sold off about 40 points, the VIX rallied about 3 points. yesterday the S&P is up about 14 points, the VIX is down just under 3 points.
I think this points to two things:
1. It makes clear how poorly the VIX performed yesterday. If the VIX was up 5 or 6 points two days ago (as it should have been) a 2.8% sell off would make sense.
2. Relative to the move, the recovery in the SPX vol is being sold aggresively
The $VIX performed very poorly yesterday and we should have seen a larger drop then this. This show us how traders are more confident about the S&P then they should be.
Keep your eyes on todays market.. NIKKEI and FTSE is all up but I still expect a low flat/down opening. if this happen we will probably see another sell off.
Comment: How certain am out about this? Well, nothing is certain but death and taxes but I will stop this blogging thing if the market opens 2% up.