Wednesday, August 13, 2008

08.13.08 - Very Negative Tick

The market couldn't recover from the morning gap down and adjusted tick remains highly negative as Energy pushes higher (XLE +2.5%). Note the successive periods of lower lows and highs. I'll be looking for possible strong SPY support near its 50-day moving average ($127.25), though I'm already working my hedges off. Also, I'll get that USO/SPY correlation study up later today.

11:30AM PST UPDATE: First money came out of bonds, then energy as the SPY broke its VWAP -- doubt we'll hit break even though. Tech and Small-caps have been amazingly resilient, indicating on-going rotation.

11:45AM PST UPDATE: Well what do you know! Pretty bullish - trail stops.

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