Tuesday, October 23, 2012

No changes.

Systems will hold their current positions.  That keeps the JT Comp and myself in cash.  Contango is no longer strong, but not in backwardation yet.  History suggests a good time to buy stocks is when VIX futures slip into backwardation after such a prolonged period in contango.  We are not quite there yet. 

See you tomorrow.

J

20 comments:

  1. It looks like the VIX is finally going to close above its upper Bollinger Band. The result is usually (although, as with most things in the stock market, not always) a sharp decline in the days to follow, which is bullish for equities and XIV.

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    1. Exactly. The VIX rarely spends more than a couple of days at or above its upper BB before retreating.

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  2. I am lucky i closed my NFLX position at 68.22 lolllllll because missed earning

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    1. Always gambling holding any stock into earnings... Congrats on taking your profits and moving on.

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  3. Alex, You tend to tell us what you did, not what you're going to do. It can be very interesting and helpful to share what you think is going to happen; on the contrary, reporting your great trades after they happened may be of interest to you but has little value to other people.

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    1. I am going to give you my next pick before i open my position :)

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    2. Thanks for offering to share your next trade *before* you do it. Because Al is correct, if you're telling us after the fact it's useless and does not belong here.

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    3. I would add to that, that if you post an entry, post an exit, too. Basically we should have a "no post, no boast" rule here.

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    4. Must be something about being named "Al" and NFLX.. that's two late-posts by the Al's here about NFLX.

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  4. J, sorry to see yer not buying this. I'm out of the last of all of my shorts and buying this. Leaving room to add , as usual.

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  5. I'm with ya JKH. After taking a long, hard look at some things, I see no reason not to purchase some longs today, especially on any weakness. I'm targeting XIV. The primary reason is because VXX is up over 7% since my CCI rules gave a short signal on it 2 days ago. It appears to be primed for a fall, which of course bodes well for XIV. More later...

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  6. Nice to have yer company w/me... Would be ideal if we opened basically flat or down, and then moved higher the first 30min or so.

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  7. Looks like we're going to open higher.

    J and JKH, what kind of upside do you foresee? In other words, do you have any targets?

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  8. Just sit back, enjoy the ride and let the mkt tell you where to get out.

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  9. I've been sitting on my hands all day. So far, that appears to have been a good move. JTS is likely going to cover its short. No buy signal yet, though. CCI is generating a fresh buy signal, so I'm likely headed toward a 50% long position. Looks like XIV. Contango still holding on...

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  10. Interesting day. Currently, both VIX and XIV are down. And both are outside their Bollinger Bands on the daily chart (VIX above and XIV below).

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