[ Older articles ]
[madtrader]
Mon Feb 4, 9:07am PST $VIX.X
VIX has finally registered a sell signal here. Despite the fact the spike today is lower than last week, the VIX momentum has crossed up, suggesting a stronger spike to come. Of course, the day isn't over yet. Unless we get a big reversal later today, the sell signal stands. none.
[madtrader]
Mon Feb 4, 8:55am PST QQQ
Trying to test the $37 range again. A break here will accelerate the selling. I am already seeing some weakness in some chip names despite the bullish commentary on the sector by big brokers. On the flip side, I don't think the market is reacting to the Enron news anymore. The focus is still on some big name companies with "obvious" accounting issues. I believe until the market can sort out who is guilty and who is not, we are just going to drift sideways. And that isn't all that negative. none.
Register for our newsletter
[RumorDude]
Mon Feb 4, 8:37am PST TYC
I will remain quite cautious on this issue regardless of how it trades short term. Looking back at both ENE and more particularily, KM, as soon as people started to seriously question whether or not they wanted to trade/sell together, the situation was exacerbated. If you recall on KM, in particular, we were long the 5.00 and 2.50 put and closed them out a bit prematurly under the guise "fine, sell off the inventory and there shouldn't be any need for bankruptcy". But what happened instead were the suppliers no longer wanted to supply and they immediately wanted to get paid back asap. Again, TYC is not anywhere near the same (esp. in terms of debt), but as more issues are brought into the limelight, you might have second thoughts about whether or not you want to do a deal with TYC: will they be around to fulfill their end? Maybe you'll wait a bit and see what happens over the next few months. This type of attitude could easily contribute to some very weak numbers in the near future. none |
