The other day I forgot to mention the biggest factor in oil trading. The major houses have used foriegn subsidiaries to get around the Regulators and take over size positions in the past. Like when it ran up to $100 several years ago. Goldman analyists were telling the public it was going to $140. We found out later they had cornered the market through a Swiss firm. Just goes to show that Jesse Livermore is still current reading.
The 10 day average of the ISEE equity call - put ratio has hit multi year lows today.
During the last bear market it also hit these readings, but note that the S&P had already made a huge correction to get to those readings. We've hardly fallen at all now.
The rise in volatility could suggest wider swings, but bear in mind volatility can work in both directions. All it is saying is that the next move will be markedly wider than previous moves, either down OR up.
WSJ (Wall Street Journal) article today on increased volatility. One of their bloggers claiming it is all the electronic trading.
I should add that what you show fits right in with what Nassim Taleb said in his last book about systems that are artificially constrained (Plunge Protection Team).
Last edited by Trades with cats on Wed Jan 28, 2015 2:45 pm, edited 1 time in total.
Gold just made its first quick move today--up a bit, then cut back. EUR/USD made a break down at same time, still down. Seems conflicting these two moves....still waiting.
OK, gold moving down, so once it gets below 1286.20 (almost there now) we are prob looking at dollar strength interpretation of FOMC, which puts SPY up & EUR/USD down.
""(Reuters) - Goldman Sachs said on Wednesday it expected prices for WTI crude oil CLc1 to trade close to $40 per barrel for most of the first half of 2015 in one of the lowest forecasts among major investment banks.""
Trades with cats wrote:The other day I forgot to mention the biggest factor in oil trading. The major houses have used foriegn subsidiaries to get around the Regulators and take over size positions in the past. Like when it ran up to $100 several years ago. Goldman analyists were telling the public it was going to $140. We found out later they had cornered the market through a Swiss firm. Just goes to show that Jesse Livermore is still current reading.
show time. the first reaction is true direction, so we're going up? should be a false counter move first though.
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*FED REPEATS IT CAN BE PATIENT IN STARTING TO RAISE RATES
•*FED SAYS ECONOMY HAS BEEN `EXPANDING AT A SOLID PACE'
•*FED CITES `STRONG JOB GAINS' AND LOWER UNEMPLOYMENT RATE
•*FED SAYS INFLATION EXPECTED TO DECLINE FURTHER IN NEAR TERM
Disclaimer: I am not an investment advisor. This is just my opinion NOT investment advice.