Even though the daily chart in Amazon (AMZN, $359.05, off $0.75) does not look awesome….the WEEKLY chart gives us reason to believe that we may start to see some higher prices in this one. The weekly chart pattern is still a rather bullish one, with a pattern of higher highs and lows and price above [...]
Normally, when the VIX begins to enter a new level, the Futures don’t ‘buy’ into the move. This causes the VIX to either be overly backward for periods of time, at levels the VIX would not be backward in, or alternatively, to have an extra steep contango when IV is clearly dropping. We saw something [...]
Every so often, typically a few weeks after AAPL earnings, traders go a little overboard in selling AAPL option premium. Well, it’s been a few weeks since AAPL earnings, and traders have sold AAPL IV (Implied Volatility) down to stupid cheap levels…again. Take a look at a chart of VXAPL (the VIX of AAPL).
Had it not been for Friday’s dip, the market would have actually logged its third weekly gain in a row last week. Problem is, Friday happened. Indeed, Friday’s action may have underscored a much bigger problem for the bulls – a problem that could have been easily discarded with just a little progress. Now that [...]
I spy a buy setup in ConocoPhillips (COP, $65.37). There was a Fibonacci price cluster of support at the $61.84 – $62.82 area. This zone included at least 6 Fibonacci price relationships that overlap each other nicely. There were also a couple of timing projections that came in as we tested this key support. I’m [...]
In the last 3 days, the market has rallied about 30.00 dollars in the SPX. Knowing that, traders would expect the VIX to have gotten completely pasted as traders dumped volatility. Take a look at how S&P has moved and how VIX has moved. Livevol (R) www.livevol.com When the S&P moves up, one of the [...]
The Russell 2000 was down on the week while both the S&P 500 and Nasdaq-100 were higher. Despite the underlying market dropping, the CBOE Russell 2000 Volatility Index (RVX – 21.43) was lower as well losing 6.42%. On Friday RVX closed at a premium of 6.14 narrowing from 7.05 on Thursday. Based on recent history [...]