Qs

I am actually putting my toe in the water on the short side with the Qs.

UPDATE:  March 21, 2006 2:00pm

42 and change is definitely a key level technical level, but I am considering several other factors relative to the charts:

1) Relative outperformance of Low Quality
Stocks
2) Decreasing Breadth
3) Length of bounce
4) Bulls are Everywhere!

Doug Kass notes that new 52 week highs keep fading relative to market highs.

The bounce — 6 down days in a row followed by 6 up days — feels tired.

Bulls everywhere comes from Jeff Saut quoting Richard Russell’s comments.

I’ll have more on the relative outperformance of the junk later tomorrow . . .

UPDATE 2:  March 21, 2006 3:40pm

I have no experience trading VIX options (who does? They are brand new), but I decided to buy some May 12.50 calls  — just a smidge, to test out how they trade.

Category: Trading

Been Down So Long (It looks like up to me)

Category: Economy, Financial Press, Investing, Markets, Psychology

5 Year Performance, Selected Markets

Category: Investing, Markets

Where are the Bears?

Category: Financial Press, Investing, Markets, Psychology

Federal Reserve Speech Roundup

Category: Federal Reserve

Nasdaq Volume Decreasing

Category: Markets, Technical Analysis

The Single Company Magazine Cover Indicator

In the past, I have warned against relying on the magazine cover indicator for specific companies. There are some very specific caveats on this here. The reason for this is that, in my experience, the Cover Indicator is useful for determining when large social phenomena are reaching an emotional crescendo. Oftentimes, emotions take over at…Read More

Category: Apprenticed Investor, Psychology, Technical Analysis

Earnings Expectations Slip Slightly

Category: Earnings, Investing, Markets

Bulls & Bulls

Category: Financial Press, Psychology

Linkfest!

Category: Weblogs