Seeking Alpha

Price Headley, CFA's  Instablog

Price Headley, CFA
Send Message
Price Headley was inducted into the Traders' Hall of Fame in 2007 and is the founder of BigTrends.com, which provides investors with specific real-time stock and options strategies and investment education to profit from significant market trends. Price appears regularly on CNBC, Fox News, and... More
My company:
BigTrends
My blog:
BigTrends Blog
My book:
Big Trends in Trading: Strategies to Master Major Market Moves
  • Weekly Market Outlook from Price Headley 0 comments
    Apr 14, 2009 4:49 PM | about stocks: VXX, SPY, QQQ

    Weekly Market Outlook


    Earnings season kicks into gear this week starting Tuesday -- some the big names reporting this week include GS, INTC, JNJ, ABT, GOOG, HOG, JPM, LUV, BBT, C & MAT.  On the Economic calendar this week we have PPI/CPI, Retail Sales, and Jobless Claims among other reports.

    Many traders are talking about last week's mini-implosion on the

    CBOE Volatility Index (VIX)

    , which saw this measure of index option implied volatility break below the key 40 level and approach 35.  Some of this is due to the market rally, but other factors contributing to the move down may include low volume, a long holiday weekend, and the approaching summer.



    As you can see on the following chart, the VIX broke below its Bottom Bollinger Band on Thursday for the first time in some time.  The Bottom Acceleration Band around 35 is a logical support/bounce area for the VIX.  The 40 level remains key.  We may now be in a 35 to 40 range on the VIX in the near-term. 



    VIX Daily Chart


    The S&P 500 Index (SPX) and Dow Jones Industrial Average (DJIA) both took out key levels last week -- 850 on the SPX and 8,000 on the DJIA.  Whether these indices can hold these levels after the recent strong multi-week rally will be key to determining whether we are in a trading range or will burst forward to new near-term highs.

    SPX Daily Chart


    The NASDAQ 100 Index (NDX) continues to be an outperformer, garnering its 5 straight week of strong gains and is even looking positive on the Weekly Chart (see below).

    NDX Weekly Chart


    Bottom Line: We will be watching the market's reaction to earnings and future outlooks this week, the reaction often being more important than the earnings themselves.  The 35/40 area on the VIX, the 850 level on the SPX, and the 8,000 level on the DJIA are key short-term levels -- holding these areas will important if we are to continue the recent rally, while failures here may put us back into a trading range.

    Trade Well,
    Price Headley
    BigTrends.com
    1-800-244-8736

    Disclosure:  None

Back To Price Headley, CFA's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.