We got a round of the correlation game started this afternoon, but it went nowhere fast: either headline writers are getting smarter, or today’s action is just too tenuous even for them! We realize we’ve never codified the rules of this game before, so:
Get your officemates or pals together, and visit the financial homepage of any mainstream media outlet. Y! Finance, Bloomberg, even CNN Money will do.
Scan the top headline.
If the headline makes a dubious…
This morning (premarket) we sent a note to subscribers laying out some hedging strategies, should they be needed in the event of a continued rally. Happily, not only was that note totally unnecessary, but today’s fantastic drop has us ideally positioned going into next week.
As several members mentioned today in correspondence, the advantages of market-neutral trading strategies aren’t limited to markets that blandly drift sideways; being neutral is also a great way to avoid the day-to-day whiplash of the…
The Dow shed one hundred points in the last hour and a half of trading. The Dow and S&P held onto some gains, but the Russell 2000 and the Nasdaq 100 actually closed the morning gap and ended the day in the red. The late day selling seemed to be led down by large cap tech, as GOOG AAPL RIMM BIDU all moved lower.
Volume was a bit higher – back toward average levels at least, though most of that…
The S&P 500 is sitting right at the trendline that extends from the March lows, and is also right at the 20DMA, which is a reasonable place to be after drifting above that moving average for the past couple weeks. Market internals suggest that this pullback may be about finished, providing a setup for some further upside; breadth and on balance volume improved on Friday. At the same time, options sentiment is still bearish, and a few technical indicators (CCI,…
Wednesday, June 18, 2008
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