Actually I have to side with Scott on this one..
Just this AM, I was watching the PREM..
First I saw it tank into negative numbers at about 11 EST or so, the first time it did. Market was at -150.. Market went to -250 or -280 within 30 minutes..
Then right afterwords, the PREM went to +8 and the market rebounded 75 points..
That was one day and within the period of about 90 minutes..
I firmly believe that wide swings in the PREM, like today can be used to trade. One might be foolish to not use all tools available..
Another I have been watching is TICK, when the TICK advances hard in any one direction, that has been a point of reversal when it gets to extremes. Still looking into that one. But today it worked. I watched it and watched DELL drop to -5 1/2 and mentioned on Stock Attack that it might be a buy-in opp.
Keep your eye on PREM, it is a good indicator.
BTW.. cash closed at exactly 8 points below FV today, add on the current -7 on the futures, and as of 4 AM, we are down 15 on the S&P...
Japan got spanked and Hong Kong ended down too, same for some Europe markets..
Right now might be a good time for the FED to step in and say or do somthing. We are teetering..
FWIW
edit) Slide continuing. Now we are down 20 S&P points.. at the lows of the day... |
