Leaders are leading!
– Take your meds… MYGN at an 8-year high after beating the street. Tides rise: AFAM catches a bounce. ISRG spikes above 110. One med stock I don’t like is PRGO … its generic anyway.
– Cup of coffee? GMCR set a buy trigger. Heading to new highs. SBUX still is SBUX minus the ‘B’
– Still too early to attack the school stocks. Each company that reported has so far blown past expectations. COCO, CECO, APOL, ESI
Scratching my head:
– Keeping an eye on those divergences in the inverse ETFs… how is it possible that the Dow goes +120, and FAZ stays +4%. Nonsense. Stay away from them.
VIX is stupid. Continue to use technical and momentum indicators.
Continue to use Monday’s bear-tail (bullish sign), and today’s wedge pattern for technical indicators.
2/3
2/2- proved helpful on Tuesday’s tape…
… notice Tuesday’s tape, how the market really reacted to that 7940 point I alluded to. Provided excellent support…
… bounced at 7943, and finally, notice the breakout above 2/2’s tail. Classic.
See, I don’t only use the VIX. Lol. So bears, I’m bearish long term, but I’m not seeing good setups here to stay short. Probably the most convincing tell for me is that leaders moved Tuesday’s funky tape. If you’re into shorting, you want to short rallies where laggards are leading, like what happened in early January (with the VIX under 40 = superior entry for shorts). But yeah, I play the tape how I see it, so I’m using Monday’s and Tuesday’s story on the tape to guide my bullish plays.
And my jacked chart of the day goes to… Jeffrey Lin from the FinViz posse, for his magnifying glass analysis of a dried up SKF. Not bad bro, $20 move since.
Laterz!
-gio-
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thank you GIO
but what is your software you use for charts
Gio, I think you aluded to this. Just fyi
iPath S&P 500 VIX Short-Term Futures ETN (VXX): This exchange traded note is an unsecured debt security issued by Barclays Bank PLC designed to track the S&P 500 VIX Short-Term FuturesTM Index TR, which offers exposure to a daily rolling long position in the first and second month VIX futures contracts and reflects the implied volatility of the S&P 500® Index at various points along the volatility forward curve. Barclays has a VXX Overview on the iPath website.
iPath S&P 500 VIX Mid-Term Futures ETN (VXZ): This exchange traded note is an unsecured debt security issued by Barclays Bank PLC designed to track the S&P 500 VIX Mid-Term FuturesTM Index TR, which offers exposure to a daily rolling long position in the fourth, fifth, sixth, and seventh month VIX futures contracts and reflects the implied volatility of the S&P 500® Index at various points along the volatility forward curve. Barclays has a VXZ Overview on the iPath website.
Before using these ETNs in your trading, you should understand the following:
These products do not track the popular VIX index, they track VIX futures. VIX futures often act quite differently than the VIX spot market. The S&P white paper provides additional light on this subject, as does a recent article by Don Fishback.
These products are ETNs, not ETFs, please consult additional information on ETNs.
Unfortunately, someone will not heed the warnings, and we will see articles claiming that these products don’t work because they don’t track the VIX.
Despite the drawbacks, the ability to “buy” volatility with an exchange-traded product has been eagerly anticipated. I expect this to be one of the most successful new ETF/ETN product launches of 2009 and pull in a large amount of assets in a relatively short time. Both started trading last Friday, and early indications are that traders prefer the VXX to VXZ. Nearly $15 million of VXX exchanged hands in the first three hours of trading versus $5 million for VXZ.
Just make sure you know what you are buying before you place your trade.
Gio,
Quite honored that u jacked our chart, bro…ty for kind words. We are Finz.tv tho, not FinViz..lol. That chart was from myself and Brother Lin. Skiffy tried to attack the 152 area again, but the approach was too steep. I’ll be watching for a another signficant move in either way.
-Alamo-
@Stuart… yeah, that’s the one. its messing with the traditional VIX data.
@Jimmy Scottrade Elite
@Alamo oh yeah, FinzTV! Lol. My bad, it was late when I finished the post.
Gio, MELI action may be due to rec from Fast Money last night ….
Thanks. I hate MELI… you all know that.
YUP
Hey Gio!
Glad you could use our chart…hopefully we’ll find more good setups in the future. Love your nightly watchlist and trading plan so nice and clear for the next day. Read it every night. See ya on twitter.
~Jeffrey
Thanks, I really enjoy your video and music clips.