Thursday, May 26, 2011

Concerned about longs, Volatility Ratio at it's consistent lows



I love this Ratio, check out the construct.    It draws nice lines, so it matters.

VOS is now at it's all time lows, a consistent bounce point.   So back to basics....expect that "trend" to continue until proven otherwise.   This doesn't make it look like SPX will get to 1400 now.

Also see the ACT...the Asset Class Total, making  huge move way outside the Bollinger Band.   This is mostly due to TLT the 10 year bond.  Flight to bonds?

ACT








These are custom ratios from Hawaii Trading.   I trust them to speak more clearly than most everything else.   

I am closing long /ES, and long CCIX (more on that trade idea in a future post)

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Insightful and Useful Comment!