Sun, 24 Sep 17, 07:26:14 PM UTC
Subscriber: Log in

Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Nov. 10, 2014

Reaction to Friday’s Non-Farm Payroll report was surprisingly tame. Nevertheless, early weakness continued to offer decent buying opportunities as prices approached lower support levels (as provided in our daily tables) to quickly reverse higher. Since the defined “Symmetrical Triangle” pattern has resolved higher (with the close above the pattern’s upper boundary), RUT now has a […]

Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Nov. 7, 2014

Small caps continue to underperform the large cap indices as traders wait for the reaction to Friday morning’s Non-Farm Payroll (NFP) report. Most notable is the defined “Symmetrical Triangle” pattern suggesting an extended directional move with any violation of either the lower or upper boundary of the Triangle. Since the longer term ascending trendline is […]

Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Nov. 6, 2014

Russell 2000 appears to be biding time awaiting Friday’s Non-Farm Payroll (NFP) report. Small caps failed to break higher and diverged from the large cap indices (i.e., SPX), but…RUT didn’t follow thru lower either. This very short term consolidation pattern ahead of a know volatility event isn’t surprising as market participants are avoiding “risk-on” trades […]

Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Nov. 5, 2014

Monday’s weakness after a new rally high continued Tuesday resulting in an ominous “Bearish Reversal” pattern. However, we did state that throwbacks to lower support levels would offer decent trading opportunities and indeed that is what occurred. Although a bearish short term trend reversal has been defined, it will require follow thru lower to be […]

Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Nov. 4, 2014

Most equities indices paused to digest gains after last weeks ascent to new rally highs. Russell 2000 was no exception as very short term overbought conditions have been relieved allowing for better long entries on any anticipated throwback to test an open gap and lower support levels. Fighting (read shorting) the current rally is too […]

Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Nov. 3, 2014

After an initial knee jerk “Sell the News” reaction to last week’s FOMC announcement, Buyers returned to overwhelm lackluster selling and springboard back above former 200 Day Moving Average resistance. Bullish month end seasonality remains and any minor throwbacks to test support or in the case of RUT, test of an open gap should offer […]

Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Oct. 30, 2014

Preliminary Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Oct. 29, 2014

Monday’s ending bullish “Hammer” pattern indeed provided higher prices leaping above the overhead 50 day moving average and into the all important descending 200 Day Moving. The 200 Day Moving Average is rarely captured without multiple tests. The extensive rebound from the mid October lows cannot be ignored, but declining volume during this rally is […]

Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Oct. 28, 2014

Russell 2000 continues to lag the other major indices as investors/traders remain somewhat risk averse. However, Russell 2000 is finding interested Buyers when lower moving average support levels are tested. Monday’s ending bullish “Hammer” patterns normally favors higher prices with overhead 50 day moving average a likely target. Since the 50 day moving average is […]

Normal Seasonal Weakness Weighs on Equity Indices

SPX Daily Chart 8-4-14

With a return of seasonal volatility to financial markets last week, we believe this is a good time to review and evaluate our earlier views. In prior commentaries, we were very cautious and reluctant to add any further exposure to equity index complexes as U.S. equity markets extended to historic highs this past June and […]