Friday, September 11, 2009

09.11.09 - Negative Drift

After marking new highs in the early morning session, equities are struggling under their declining VWAPs and apparently heading towards their respective pivots. The semis are being hit particularly hard. Cumulative Tick and Advance-Decline slopes continue to deteriorate, although down volume is only slightly outpacing up volume at this time. ETF Rewind kicked out an official short-signal last night, not that those have worked out tremendously well during the last six months!

2 comments:

Anonymous said...

Jeff, great blog! Everyone I talk to is bearish for Sept., which is probably the reason for the market's recent strength. In this low volume environment, I wonder if the charts are telling any real story or just represent background noise. Putting my bearish bias aside, you can’t ignore the calm and relative strength this market seems to have. You have mentioned the VIX a couple of times and from my vantage point the VIX at 23 makes me more eager to buy puts as insurance. Options premium sellers have had a great run the last several months, but now I think the VIX is overdone and is not capturing the risks of the things that can still go wrong in the macro-environment. Positioning with back spreads or straddles seems timely. The world has shifted beneath our feet and "everything right is wrong again", so... Never buy a dull market!

jgpietsch said...

Thanks Anon. -- Jeff