Friday, February 6, 2009

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VIX - Feb. 6 - There was significant divergence in the VIX in the latter part of the day relative to the bullish trend of the market.  The VIX (Volatility Index) is usually a contrarian index and ordinarily runs counter to the market.  With the market going up the VIX should be coming down.  In the afternoon the VIX went up at the same time as the market was going up.  This divergence does raise some questions as to the momentum follow through on Monday.



Bull Day 3 - Feb. 6 - Strong Bull Trending Day - Strong Internals in Control.
2D, 5 m. - Feb. 6 - Jack in the Box at the open made taking a position difficult.  The A/D's were 4:1 right from the start.  A/D's are more important at the open than is the UVOL/DVOL.  The opening was, in fact, a "JA" play but the "Out of the Box" made it hard to play.
5D, 30 m. - Feb. 6 - Strong trending market.  The Bull Potato has gathered strength and momentum.  Of course the weekend could lead to a change.  The close was relatively strong.
10D, 60 m. - Feb. 6 - The Bull Potato started at the Gold Spot.  There was a stumble on Wed. but it quickly recovered and has gone on to strength.
3M, Daily - Feb 6 - The Gold Spot shows a long term Bear Potato.  There is a little bullish move in the last few days.  Monday and Tuesday will be of interest to see if the momentum will hold up.