Wednesday, October 7, 2009

10.07.09 - Range Day Consolidation with Weak Undercurrents


After two days of significant gains, price is taking a breather ahead of earnings season.  However, I note a strong preference for safety over risk today, keeping our Market Sentiment readings far below the half way mark.  Nevertheless, price is running laterally as are most internals, and Up & Down Volume are well matched.  Thus, I'll play it as a range day for now even though those sentiment readings have me cautious with longs.

3 comments:

Anonymous said...

Agree that internals are weak but VIX is down 3+%.

jgpietsch said...

True, but I didn't write internals were weak. Rather, there is a strong prefernce for risk averse securities today. Good observation on the VIX. ;-) JP

Trade Doctor said...

Jeff,

Great blog! Face it HFT is a tough game if your not Goldman. These markets are thin and volatile. The VIX is not capturing all that could go wrong. I am not a very good prognosticator, but I have to say, despite the gains the markets have made, they do not appear healthy. They have become primal and they will rip your head off if you get in their way.