Here’s a 10-day shot of the Dow — see the broken trendline and failed retest, and note that ramps in DSI only result in weak price moves:
Source: prophet.net (still loving their charts)
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The 5-day equity put call ratio is giving a louder sell signal than a few days ago:
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The VIX has been bleeding downward momentum and flattening out, much like the dollar this autumn before it started its violent reversal:
Source: yahoo! finance
Here’s the dollar vs. the euro:
Source: yahoo! finance
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I am now short stock indexes and calls, long VIX futures and long puts. It appears highly unlikely that stocks press much further here, and there is a risk of an abrupt decline in the coming weeks — all it would take is the slightest scare to trigger a stampede.
Housekeeping note: we were attacked by a Cialis spammer, which may have been responsible for the Feedburner issue, but we think we’ve licked it.
Good grief! I just overheard this on Bloomberg: “When you take football away from the American public, senators are going to react.” This is in reference to John Kerry interfering in the Fox / Time Warner Cable dispute. How in the hell is this Congress’ business?