The buyers come in as if nothing happened and pretty much close the gap. We will se what happens now. Foreign money is getting out of Dodge and US investors are left to their own devices. So far, any bad news for them is a buying opportunity. It's a little silly, especially before any retail sales report, but that's the pattern.
Keep an eye on financials, with the BIX still stuck under its 50 day moving average at 396.30. Glancing over some investing web sites, I notice a complete lack of fear or concern. Almost no volatility whatsoever with the VIX barely jumping above its 10 day ema. 11.40 is the top of the envelope, traders were hoping for at least that, but no such luck. They are selling puts with absolutely no premium as if they will never get assigned.
You know this is post-turkey day when oil is above 60, the dollar is falling apart and they keep buying stocks the minute the ticker goes red. Shorts must be pulling their hairs out or just throwing in the towel at this point, which of course from a contrarian standpoint is trouble.
The real Fed action could now be in terms of supporting the greenback and not lowering rates, contrary to what many are thinking. They are in a very tight spot.
Keep an eye on financials, with the BIX still stuck under its 50 day moving average at 396.30. Glancing over some investing web sites, I notice a complete lack of fear or concern. Almost no volatility whatsoever with the VIX barely jumping above its 10 day ema. 11.40 is the top of the envelope, traders were hoping for at least that, but no such luck. They are selling puts with absolutely no premium as if they will never get assigned.
You know this is post-turkey day when oil is above 60, the dollar is falling apart and they keep buying stocks the minute the ticker goes red. Shorts must be pulling their hairs out or just throwing in the towel at this point, which of course from a contrarian standpoint is trouble.
The real Fed action could now be in terms of supporting the greenback and not lowering rates, contrary to what many are thinking. They are in a very tight spot.
This entry was posted
on Friday, November 24, 2006 at 11/24/2006 10:25:00 AM.
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