A Change In The Wind Now Visible In Markets
Dr. Duru | Feb 22, 2013 01:58AM ET
: 62.9% (ends a 1-day overbought period
VIX Status: 14.5
General (Short-term) Trading Call: Sell more longs, initiate shorts if none on-hand.
Commentary
T2108 plunged 10.5%, dropping to levels last seen in December, 2012. Not only did this plunge end a brief 1-day overbought period, it officially seals the history of the 31-day overbought period that began 2013. the Black Friday trade I pointed out last November), buy only when (if?) the correction gets steep; my chart of the S&P 500 reminds you of my first downside target. Obviously, oversold conditions will get bought, but that is not on my radar right now.
Black line: T2108 (measured on the right); Green line: S&P 500 (for comparative purposes)
Red line: T2108 Overbought (70%); Blue line: T2108 Oversold (20%)
Be careful out there!
Disclosure: long VXX shares and puts, long SSO puts, net short British pound and the Australian dollar, long Japanese yen
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.