Donald; RE:" VIX.X "
>Take a look at Lisa's favorite candlestick website...
Thanks - I believe it was I who brought this site to her attention.
>Have you ever seen so many reversal signals...?
I have never seen a 1000-point DOW drop on my weekly charts before!
We believe it was led by our BKX.X - Banking Index, or, more broadly, the NF.X - NYSE Financials Index - and we're watching this particular sector in relation to SPY / SP98U movements.
>Within a nine day period starting AUG 4 we had a TWEEZER BOTTOM, INSIDE-OUT REVERSAL, ABORTED REVERSAL, ENGULFING REVERSAL. That's a lot of reversal signals within a 9 day period...
We attribute only some of those reversals to our market, Donald - and the others as our responses to external market events. The DAX-30 and other markets lagged us during this drop (whereas heretofore, our markets lagged their sell-offs), and the EU took time to have their first reversal at the end of their (sympathetic) sell-offs. The currency flux, and subsequent artificial intervention, we attribute to that last reversal signal on Monday.
FYI, Donald, a VIX.X - Volatility Index NewsBlurb...
biz.yahoo.com
The doji helped them (reduce volatility somewhat), but it also created a doji on the VIX.X itself, portending a possible morning star type reversal towards volatility going back up.
Very weak futures; ie., a gap-down open tomorrow - with VIX.X opening at or above ~27.75, followed by an immediate sell-programme, would be a so-called "VIX.X sell signal". Though in a fast market, it could portend another blow-down buying op, or bear trap, if an "apex" appears intra-day, followed by strong buy programmes that squeeze shorts relentlessly. Then tomorrow's VIX.X candle would look like a shooting star; the index, a hanging man or hammer dilemma, awaiting confirmation. Depends on volume - a light volume day, even with (some) price decay, would be bullish.
Consider, Donald that a sell-off of the DOW back to where it began the week - would create an enormous inverted hammer (or the classic gravestone doji) on our weekly charts (^_^)
Most TechStocks are still over-bought, don't you think ? We expect them to continue selling off or, tread water here through Friday.
-Steve |
