Volatility (VIX) among blue chips has declined by 4.6% from the open today. Since the decline began on Jan. 4, the first trading day of the year, the index has declined by 15.2%. Fear, where is thy sting?
The VIX, also called the "fear index", measures volatility of the S&P 500 stocks. When the VIX is down, the theory goes, traders are less fearful of losing their money. Risk premiums shrink.
What that means for us is that it gets hard to make money in some respects. Option premiums are lower. Bid-ask spreads are narrower. I find fewer directional trades.
Risk is the trader's friend. Without risk there is no profit. Risk is the mother of success.
So, with less volatility, indicators across the board are fairly quiet. No new signals. No big moves.
Showing posts with label PEP. Show all posts
Showing posts with label PEP. Show all posts
Friday, January 8, 2010
Wednesday, December 9, 2009
12/9 Watchlist
New signals among the high-volume stocks and etfs, with pps signal, mfi confirmation status, and price pattern:
Or, as the option addict Jeff Kohler said yesterday in a plaintiff scream of agony, "Get me the hell out of this range. Please."
AET, which was on yesterday's watchlist with a bull signal, opened this morning at upside resistance and then declined to within yesterday's trading range. It didn't decisively pierce resistance, so no trade.
My holdings:
X, a January bear call spread (c41/-c40), is showing a bull signal with a push up to near-term resistance. If it pushes through, I'm closing.
HPQ, a January bull put spread (p49/-p50), is showing a bull signal today, after a bear signal yesterday. The issue is clearly in super-whipsaw mode, as it has given three signals in four days. I'll hang on for now pending some sort of price confirmation.
UNG and KO are about where they were in the morningline.
No new signals on the indicators.
The USD/JPY currency pair continues to show a bear signal confirmed by the rsi.
- TXN, bear, confirmed, counter-up-trend retracement
- PEP, bear, confirmed, counter-up-trend retracement
- T, bear, unconfirmed, counter-up-trend retracement
- WMT, bear, confirmed, counter-up-trend retracement
Or, as the option addict Jeff Kohler said yesterday in a plaintiff scream of agony, "Get me the hell out of this range. Please."
AET, which was on yesterday's watchlist with a bull signal, opened this morning at upside resistance and then declined to within yesterday's trading range. It didn't decisively pierce resistance, so no trade.
My holdings:
X, a January bear call spread (c41/-c40), is showing a bull signal with a push up to near-term resistance. If it pushes through, I'm closing.
HPQ, a January bull put spread (p49/-p50), is showing a bull signal today, after a bear signal yesterday. The issue is clearly in super-whipsaw mode, as it has given three signals in four days. I'll hang on for now pending some sort of price confirmation.
UNG and KO are about where they were in the morningline.
No new signals on the indicators.
The USD/JPY currency pair continues to show a bear signal confirmed by the rsi.
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