"There have been three great inventions since the beginning of time: The fire, the wheel and central banking." -Will Rogers (American humorist and showman, 1879-1935)
Being a man of the times, I'm more partial to Bic lighters, bicycles and the Internet. Nevertheless, I can't deny that central banking is good to those who run the show; three cheers for fractional reserve lending! Corruption and politics aside, I love the Fed because their Reserve Notes smell good, look pretty under UV, and are accepted in any Banana Republic or war zone.
Monday, January 12, 2009
Ratios to Reason $SPX
In an effort to create more structure for this blog, I'm re-posting 5 charts that depict various trends within the $SPX. In the future this selection will be posted during the weekend.

Why am I regurgitating this mass of pretty but confusing information? The charts represent aspects of the market that are not revealed by the price of the SPX. 3 of the 5 graphs relate percentage:volatility, and currently they are bearish, trading in downtrends towards 0. If you're buying stocks, it's prudent to wait for a growing number of bullish stocks trading above the 50dma making new highs.
The other two illustrations are a bit more conventional. One measures the spread between a buy write strategy and the underlying index, creating an inversely correlated derivative of the SPX. Lastly, $CPMKTE:$CPMKTB is the relation between US Equities and US Bonds, useful for discerning the appetites of investors. Both of these indicators are signaling more downside to come.
In time, I hope to find a better method of aggregating the information presented in these graphics. Any suggestions towards such an end would be greatly appreciated.
The other two illustrations are a bit more conventional. One measures the spread between a buy write strategy and the underlying index, creating an inversely correlated derivative of the SPX. Lastly, $CPMKTE:$CPMKTB is the relation between US Equities and US Bonds, useful for discerning the appetites of investors. Both of these indicators are signaling more downside to come.
In time, I hope to find a better method of aggregating the information presented in these graphics. Any suggestions towards such an end would be greatly appreciated.
Today's Twittered Tickers $AA $C $FAZ $SRS $USO
Here are the tickers making noise on StockTwits




If you're searching for a bounce, try looking at SPY from November 20th to January 6th. Boing! My indicators say we're heading lower, so I'm selling the rips as I suspect we're due for a retest of the November lows.
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