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Joshua "MauiTrader" Hayes is CEO, President and founder of Big Wave Trading Inc., a Maui, Hawaii-based stock market advisory service. Hayes is a well-respected stock trader who combines fundamentals, technicals, psychology and money management to trade professionally for his personal,... More
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  • European Fears Renew As Stocks Fall; VIX Jumps 0 comments
    Feb 4, 2013 11:03 PM | about stocks: NFLX, FAS, UVXY, TVIX, VIXX, VIXY, VXX

    Europe kicked off the selling with Spain and Italy taking on the brunt of the selling. The DAX fell 2.5% as the index fell in heavy volume erasing last week's gains. Volume on the state side fell, but Monday's have been light in general. Technology stocks led the decline followed by financials as NFLX bucked the trend and pushed higher. The VIX jumped above the 14 level as the fear index jumped to its highest level since the 3rd of January. Monday's close didn't help out the situation as sellers had the upper hand sending the market to the lows of the session. Today is just one day, but we did see a slight change in character as we have seen the market get support in the final 30 minutes. Our uptrend remains, but we are certainly on watch for our exit signals.

    It is no surprise Europe is back in the spot light has they have tried to implement protections that are simply band aids rather than real solutions. Iceland is a great example of what should be done, but the Central Banks are in control and would be overrun if Europe went the way of Iceland. Spain and Italy have been pounded by sellers with the DAX finally feeling the heat. In addition, Europe is facing a EURO who has been on a tear against the Yen and US Dollar. Exporters are feeling heat and with the Eurozone needing exports to fuel their economy their currency is not helping. Price action suggests further destruction.

    The first week of February has not started off well with today's move. We were quite overbought after the big move in the market from the morning of December 31st. A rest here would be normal, but with the big declines in Europe a "rest" may be quite volatility. Stick with discipline and your plane and execute!

    The debate over the "great rotation" continues amongst market pundits. With the Federal Reserve buying $85bln in bonds a month how will yields go higher? If you aren't going to fight the Fed in the stock market why would you fight it in the Bond market? Just follow the trend and it will treat you well.

    Short term Trends:

    TICKERST TRENDTREND CHANGEDATECLOSE%
    SPYUPTRENDNO CHANGE2/4/2013149.54-1.12%
    IWMUPTRENDNO CHANGE2/4/201389.28-1.21%
    QQQUPTRENDNO CHANGE2/4/201366.48-1.74%
    USOUPTRENDNO CHANGE2/4/201334.78-1.61%
    UNGDOWNTREND CHANGE2/4/201318.670.70%
    GLDDOWNTREND NO CHANGE2/4/2013162.000.34%
    SLVUPTRENDNO CHANGE2/4/201330.69-0.29%
    DBCUPTRENDNO CHANGE2/4/201328.48-0.35%
    FXYDOWNTREND NO CHANGE2/4/2013106.240.64%
    FXEUPTRENDNO CHANGE2/4/2013134.06-1.06%
    TLTDOWNTREND NO CHANGE2/4/2013115.541.28%

    UNG change in trend. Good news for those who heat their homes with natural gas!

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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