Tuesday, June 30, 2009

Today is the window dressing, VIX breaking down

The window dressing is coming today, it will show its face near the end of the day as i predict the fund will snap up all the outperforming names they did not have on the books during the beginning of quarter 2. What is interesting about this VIX breakdown is it has happened in the last few days as the market has traded basically sideways without much volume and or attention. The volume levels here really tell the story, remember VOLUME precedes price movement. I haven't seen any decent volume in days, which has correlated to a muted market, this afternoon could be another story. The last hour of trading if we rally hard on larger than average volume the vix is going to be crushed hard contrary to what my previous posts have been stating. The breakdown has been larger than i expected but i am not worrying yet as Wednesday the fund are going to dump all the overbought crap they have on the books, which is a lot of crap. This should send the markets into a tailspin, putting the nail in the coffin of the "correction". Hedge Accordingly.

Monday, June 29, 2009

Slow trading week ahead, Bernard L. Madoff gets 150 years

Breaking: Madoff sentenced to .

This week as most of you know may not know is a shortened week with the market closed on Friday. Weeks like this especially in the summer bring very low volume, BUT on the contrary you can see wild movement on thin volume. So be aware if you are intra day trading. Another key event everyone should have their eyes on is quarter 2 coming to a close Tuesday. This could bring some interesting action near the close tomorrow in accordance with the window dressing theory. Notice today the after its initial opening prints, this coincides with the window dressing, im sure the vix will get crushed at the close tomorrow, only to pop Wednesday when the fund start dumping all the overbot names they snapped up late in the quarter so they look "smart", ie they have the names on the books so when they report to their clients they will look like they had all the winners on. AAha! Stay on your toes and don't over trade this week as opportunities may be there but volume may not be, you could get stuck especially in options with wide markets like ETFs.

Sunday, June 28, 2009

America's entrepreneur Billy Mays

What bothered me more than the death of Michael Jackson is the the death of Billy Mays. I wonder what the heck is going on this weekend, so much tragedy. I know this topic is not really on par with what i normally talk about, but Billy was an entrepreneur. If you are a trader and or in individual investor you are an entrepreneur also. Mays was just getting his empire going he was on track to be huge. He was also a self made millionaire and philanthropist. If you need motivation think about how much he had to do to make it big, little steps to the big time. IF you apply these thoughts to trading and investing you will eventually win, it takes passion, time, effort and most of all the entrepreneurial spirit.

Friday, June 26, 2009

The Angry Southern Bear is back!