Tuesday, September 1, 2009

JunkDEX Falls 11% in First Two Hours of Trading

I was not expecting to talk about the JunkDEX for the third day in a row, but since I have received several requests, I will run with this theme for another day.

Today the JunkDEX is showing an acceleration of yesterday’s 7.2% move downward. As of 11:30 ET, the JunkDEX is down a little more than 11%, with American International Group (AIG), Fannie Mae (FNM) and CIT Group (CIT) all down about 15% each.

Based on the large trading volumes, Sunday’s call of an impending blow-off top is looking as if it may be coming to fruition.

For some related posts on junk financials and the JunkDEX, try:


[Disclosure: short AIG at time of writing]

8 comments:

David Merkel said...

Hail JunkDEX!

Good going, Bill.

Bill Luby said...

Thanks, David. Always good to hear from you :)

Keep up the good work on your end,

-Bill

Bill Luby said...

JunkDEX closed down 16.1% today, the biggest drop since April 20th, when the SPX fell 4.3%.

dezso said...

Great post, Bill,

In fact it helped me stay in the swing (short) trade in XLF initiated last Friday. Only I did exit a bit earlier then EOD :( today, thus left some money on the table.
Keep going your blog still rocks!
Cheers,

Dez

P.S. The 9/9/2009 date seems like a Nostradamus call though :) We'll see...

Dave Narby said...

This is sixteen different kinds of awesome, one of which is being hilarious.

Anonymous said...

Too many people are expecting September to be a bad month for stocks so the market may surprise us by making September a good month for stocks.

Remember: this market is full of surprises.

Be careful.

Bill Luby said...

Thanks Dez and Dave. I appreciate the comments.

I am also glad to hear that invariably the posts that I have the most fun with -- usually because they weave the threads of serious and silly around the same idea -- are often the ones that have the best reception.

Cheers,

-Bill

sqiar said...

SQIAR (http://www.sqiar.com/solutions/technology/tableau) is a leading global consultancy which provides innovative business intelligence services to small and medium size (SMEs) businesses. Our agile approach provides organizations with breakthrough insights and powerful data visualizations to rapidly analyse multiple aspects of their business in perspectives that matter most.

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