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Dr. Kris has two degrees from MIT because one just wasn't enough. Her life goal was to figure out the universe and having done that (at least to her satisfaction), she decided to tackle something even more difficult—the stock market. Applying the scientific method along with an insatiably... More
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  • Intraday Market Notes: VIX Edging Up--Time For A Breather? -- January 28 0 comments
    Jan 28, 2013 5:38 PM | about stocks: CENX, NOR, SCCO, PXJ, FXS, HMY, BVN, NEM

    4:00 pm ET: The bulls are in full-on party mode but they'd better not let down their guard too much because it appears the bears are starting to wake up from their long winter's nap. How do we know this? Several things are giving them away. First and foremost is the VIX--the volatility index--which has been settling into a groove located between 12 and 13. Today, however, it leaped over that 13 fence and spent the day grazing in a higher pasture. Sure, the 13 level is still well on the bulls' side of the ranch, but the fact that it made such a pronounced jump is a sign that all may not be right at the OK corral.

    Another "tell" is the rising Trin (Arms Index). This is not nearly as bearish as a rising VIX, but it does lend credence to the bears' case. Also, many individual equity issues are showing signs of decreased buying pressure. This situation is exemplified by many stocks showing what is known in candlestick charting parlance as a "topping tail". Now before you make a mad dash for the exit, please note that these signs could just be indications of impending consolidation and not the beginning of a correction. Considering the tremendous gain made since the beginning of the year, it makes sense for the market to want to take a breather.

    Today's notable market action: Despite very little noteworthy sector action, commodities saw some nice moves, both to the upside as well as to the downside. On the plus side, an Oil & gas services (e.g., drillers, etc.) fund, PXJ, put in a new high as did the Swedish Krona (NYSEARCA:FXS). On the minus side, gold miners Harmony gold (NYSE:HMY), Comp. de Minas Buenaventura (NYSE:BVN), andNewmont Mining (NYSE:NEM) slipped to new lows. Following in their footsteps were the industrial metals miners Century Aluminum (NASDAQ:CENX), Noranda Aluminum (NYSE:NOR), and Southern Copper (NYSE:SCCO), all of which slid by 4%. The reason for the slide is unclear--perhaps a move in sympathy with Caterpillar's (NYSE:CAT) earnings report that said future guidance couldn't be accurately gauged because of the uncertainty in the global economy. Could it be that current global growth prognostications are too optimistic?

    Note to Subscribers: There are two new Stock Darlings and two new Channeling Stocks.

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