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Dr. Kris hails from the land o' lakes, beer, bratwurst, and Bucky Badger. She traded in her cheese hat for a propeller beanie and has never looked back. She 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... More
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  • Intraday Market Notes & Observations -- June 22 2 comments
    Jun 22, 2012 2:15 PM

    2:00 pm ET: After yesterday's major sell-off it's no wonder the major averages rebounded on the open. However, the bullishness has seemed to have waned as buyers are only barely outpacing sellers (as of this writing). Some gyration towards the end of the day is to be expected as fund managers adjust their positions to reflect the rebalancing in the Russell indexes.

    Market internals have settled down, most notably the VIX which did close yesterday just above the 20 mark but has today sunk back into bull territory. I said yesterday that shorting the market based on a one-day drop and without the participation of the VIX was not a prudent idea and if you had followed that advice, you'd be grateful today. HOWEVER, this does not mean that going long is a good idea, either. Although the S&P, the Dow Industrials, and the Nasdaq are all in the green, the Dow Transport index (DTX) is down 1.4%. As this index is considered a leading indicator of market direction, it may not be long before the other indices reverse course.

    If you're confused as to what course of action to take, you're not alone. This is a confusing market reflecting confusing times, and as such, it's best to stay on the sidelines until the situation becomes clearer. Enjoy the weekend!

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  •  
    Thanks for the update! Good judgement yesterday too. It'll be interesting to see how this latest market setup unravels.
    22 Jun 2012, 05:10 PM Reply Like
  •  
    Yes. The months up to the election should be extremely interesting. Lots of major stuff going on both nationally and internationally to keep the financial markets pumped--on both the bull and the bear sides.

    I suspect that swing traders will be having a field day. On the other hand, these intense swings in volatility could inflict pain on options traders.

    My two cents. Seeing how this all plays out should be a rollercoaster ride. Thanks for writing!

    Dr. K
    22 Jun 2012, 08:02 PM Reply Like
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  • Intraday support/resistance: $SPX 1637/1652, $DTX 632.6/641.4, $DJIA 15200/15330, Nasdaq 3429/3466, $RUT 974/985; $VIX 14.3/14.8
    about 21 hours ago
  • MSN Money bear saying Smart Money exiting market: http://on-msn.com/1980tEU
    2 days ago
  • Intraday support/resistance: $SPX 1635.5/1658.5, $DTX 634/644, $DJIA 15180/15360, Nasdaq 3423/3472, $RUT 971/986; $VIX 13.8/15.1
    2 days ago
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