Before the Open (Jun 13)

Good morning. Happy Monday. Hope you had a nice weekend.
The Asian/Pacific markets closed mostly down – Indonesia and Taiwan lost more than 1%. Europe is currently trading mixed – not all the markets are open. Futures here in the States point towards a positive open for the cash market.

I don’t have anything to add to my weekend report. The market is in bad shape for various reasons, but markets don’t move in straight lines for long. I expect a bounce sooner rather than later. It’s fine to take partial profits on shorts, but I’d maintain some exposure just in case the market melts down. If we do get a bounce, it’ll be shortable. We’ve haven’t had a complete washout, and as of now, there isn’t any catalysts looming that could turn the negative sentiment around.
The dollar is down. Gold, silver and oil are down too.
One chart I forgot to post yesterday was the VIX chart. Here it is…very odd that with the market’s recent weakness, the VIX has barely budged. I’m guessing there’s some funny math going on that’s related to the index’s lack of downward movement. Many stocks have gotten hit hard the last month yet the indexes are only down 6-7%. Doesn’t make much sense. I’m going to look into how the VIX is calculated.

headlines at Yahoo Finance
today’s upgrades/downgrades
yesterday’s sector performance
this week’s Earnings
this week’s Economic Numbers

0 thoughts on “Before the Open (Jun 13)

  1. I have been posting this based upon Elliott Wave theory, where everything
    according to them is calculated in five waves. So, in order to complete
    the current cycle we are in there has to be some sort of topping action
    which would be considered waveE up. Topping action can manifest itself in
    various forms:1. a blow off top 2. a truncated top or; 3. a normal top. HW

  2. I believe the VIX is calculated from the IV of the S&P500. And since it’s flattened out over several weeks, current news won’t have as great an impact.

  3. Well here comes the quarterly “make up the settlement” options and futures expiration this Friday…
    Should be very interesting to see where the evil doers screw the longs and the shorts…

  4. the big insto/banks are just loving this
    go to the nyse tick chart—-negative extremes all over the place
    the instos are selling everything the fed is giving them
    the fed doesnt have a chance

  5. nite all now that europes closed –ive made my money for the day
    i will turn control back to the fed and those pit traders that want to control fri quad witching

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