Friday, March 14, 2008

03.14.08 - Bear Stearns B.S.

Ugly tape, but so far we are holding just below S1 on the Spiders. Cumulative Tick is very negative and the VWAP is downward sloping, so be careful if you are considering standing in front of the train. Plus, it's Friday. Positives for next week are a likely positive Fed + Holiday effect. Below is a chart of oil, gold, the S&P500 and an inverse US Dollar ETF...

1:50PM CST UPDATE: I'm looking for the next level of possible support at $127. Boy, I'd hate to be short ahead of next week, news risk aside. This is an uncertainty trade today and the markets are down over 2.5% -- when will it be resolved?

2:40PM CST UPDATE: VIX almost tagged 33 today. Healthy volume and we still held the lows from several days ago. Close to capitulation in most books. I'd think about buying any further weakness into the close.

Blog to Read: VIX & More - A new ratio to consider.


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