The sudden deterioration in the short term indicators is a little troubling to me. While I am defensive, the longer term weekly up-trends are still up.  Last month, the market weakened considerably early  in the month, only to come charging back by options expiration.  We do not know ... Read more

Take a look at IYR. Take a look at the target, it's a measured 51.50 off of the broken neck line of an inverted H&S-like object. The reason I say H&S-like is because, like the broad markets, this is thing did not fall far enough and chop around before the upward thrust and we are floating ... Read more

I would say that I was whipsawed by the recent gold miner events, except that no trading was done on the post-Fed upside nor the downside until yesterday when HUI reached the first support level, where I added to two positions. So, while it was mildly disappointing to see the rise to new highs ... Read more

Major Averages Pull Back Without Leadership- PICTURED BELOW: The Gold & Silver Index ($XAU -3.36%) gave way to additional profit taking pressure on Monday and slumped under its 50 & 200 DMA lines, sinking near an upward trendline connecting multi-month lows. Over the past 10 trading days in ... Read more

As I mentioned in various previous blog posts, (e.g. see here ), I believe mean-reversion strategies have been performing very well in the last year. Now here is an article (hat tip: Laurence) that provides concrete analysis to support this hypothesis. In fact, the author points out that most of ... Read more

So why is the VIX just not doing what it's "supposed" to do these days? By that I mean of course, why does it sit in the 40's in what seems like a 70 VIX world we trade in? At least if you trade in anything financial. Quite simply, it's just not a 70 VIX world. The VIX is a statistic use ... Read more

Kind of blustery out here today, but snowfall way below the "number" so far. Anyway, Traders's Narrative takes a look at the VIX under performance that seems to occupy everyone's mind's these days. Hat tip Trader Mike and Abnormal Returns. As more and more days go by with the market da ... Read more