Thursday, September 24, 2009

End of September Links

As always – and in an effort to ensure minimal overlap with some of the other excellent sources of links – I give preference to material that focuses on the VIX and volatility, options, market sentiment, and ETFs:


…and on an unrelated, but uplifting note: Project Icarus

2 comments:

Anonymous said...

Bill, your tweet earlier in the day about SPX bottom. Could you elaborate on your thought process?

Bill Luby said...

A number of factors came together at about the same time, just as the S&P 500 index was crossing below 942, including (not necessarily in order):
* strength (or the absence of continued weakness) in some key sectors, including small caps, tech and financials
* technical support in the S&P 500 futures
* some cycle timing factors I look at (but have not talked about on the blog)
* volatility analysis
* volume analysis
* put to call ratio analysis
* 'gut feel' from watching the tape

None of these was decisive by itself, but taken together I though it was a good idea to get aggressively long under SPX 1042.

There was some buying on the dip, but with today's weak finish I don't have a particularly strong conviction about Monday.

Enjoy the weekend,

-Bill

DISCLAIMER: "VIX®" is a trademark of Chicago Board Options Exchange, Incorporated. Chicago Board Options Exchange, Incorporated is not affiliated with this website or this website's owner's or operators. CBOE assumes no responsibility for the accuracy or completeness or any other aspect of any content posted on this website by its operator or any third party. All content on this site is provided for informational and entertainment purposes only and is not intended as advice to buy or sell any securities. Stocks are difficult to trade; options are even harder. When it comes to VIX derivatives, don't fall into the trap of thinking that just because you can ride a horse, you can ride an alligator. Please do your own homework and accept full responsibility for any investment decisions you make. No content on this site can be used for commercial purposes without the prior written permission of the author. Copyright © 2007-2013 Bill Luby. All rights reserved.
 
Web Analytics