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


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,


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