Wall Street Journal today says the creator of the VIX is working on a new index to track “ambiguity” in the market. Sure hope it is a better indicator of “ambiguity” than the VIX is of “volatility.”
See full story here: http://on.wsj.com/2ma2bRl
Have a great weekend.
I think we all suspected that the S&P’s return was driven by a small number of stocks but, only four? See PIMCO’s piece here:
PIMCO: PUTTING MARKETS IN PERSPECTIVE Financial Markets: Equities
From Ben’s piece on the oil market:
“Today’s wild ride in crude saw price plunge below the 29.00 handle in the lead March contract, trading to a new contract low at 27.56. ”
Click here for complete piece
From Futures Magazine today:
“Last Friday, January 15, 2016, the SPX broke below its Aug. 24, 2015 low, which is equivalent to a major sell signal if price closes the month below that level.
Last week, The Dow Jones Industrial Average slumped 511 points, or 3.1%, to 15,866, while the S&P 500 slid 64 points, or 3.4%, to 1,856.34, led by the financials, technology and energy sectors. The Nasdaq Composite tumbled 190 points, or 4.1%, to 4,424.35.”
Click here for full article
Check out this morning’s piece from Mr. TopStep. Some good thinking to consider regardless of what market you trade:
“As futures traders we try to get in and get out, but when the markets are this volatile and moving this much, it’s imperative that you define your risk and use stops. These are the types of markets that when you’re wrong it’s best just to get out and start over. A few days ago someone on Twitter talked about adding to a losing position. I understand the idea of averaging up or down, but I also understand that when there are 30 to 50 handle range days, adding to losers can blow up an account in minutes. That is why we continue to think as a scalper, get in, get out, don’t fall in love with your position.”
Have a great day,
Click here for the full piece: http://bit.ly/1Rc4XlI
Morning read from Mr. TopStep.
Have a great day