Some of the things that I'm watching for in the stock market today as well as a few trade ideas that stand out right now. This video starts with a quick update on the broad markets via QQQ, SPY & IWM, followed by a look at the volatility indexes ($VXN & $VIX) as well as an update on some of the recently highlighted trade ideas that look compelling at this time.
A recap of today's price action & recent technical developments in the US equity markets (SPY, QQQ & IWM) as well as a few key sectors ETFs such as XLK (technology), XBI & IBB (biotechs), SMH, XSD & SOXX (semiconductors) as well as the volatility indexes ($VIX & $VXN).
Fundamental & technical analysis on a few key sectors including the automakers, biotechnology, semiconductors, technology as well as the volatility indexes. The following stocks & sector ETFs are covered in this order: F, GM, TSLA, TM, XBI, IBB, PBE, SMH, XSD, SOXX, XLK, TECS, $VIX & $VXN.
I was just asked the following questions & figured that my response was worth sharing: Q: What's your opinion on trading VIX? I'm looking at TVIX, which is 2x VIX, currently pretty low at $8.30s. I was wondering if it follows the same charting principles and indicators as normal ETFs? A: Let me begin by answering the latter question; Yes, the VIX can most certainly be traded successfully using technical analysis (charting) as other financial instruments such as stocks, futures, etfs, commodities, etc... As an example, this 120-minute period chart shows just how well the $VIX trades using technical analysis: Buy on dips to [...]
Since the June 2nd Volatility Likely to Spike post, the $VIX has climbed as high as 40% following the breakout of the R1 level & is currently trading about 30% higher following the expected backtest of that broken resistance level. If the scenarios posted here on June 15th (also shown below) continue to play out, as is still my expectation, then we should see a continued move higher in both the $VIX (CBOE Market Volatility Index) and $VXN (CBOE Nasdaq Volatility Index) up towards the next target levels. Such a spike in volatility is likely to coincide with a move down [...]
As a follow-up to the June 2nd Volatility Likely To Spike post, here are a few salient technical levels to watch for on the $VIX (CBOE Market Volatility Index) and the $VXN (CBOE Nasdaq Volatility Index). Note how the scenarios drawn on these volatility indices are in synchronicity (volatility trades inverse to stock prices) with the recently posted scenarios for the broad markets and key stocks such as AAPL.
For nearly a month, this market has going basically nowhere in a choppy, nearly impossible to trade sideways range. However, large unidirectional moves typically follow such sideways consolidation & the charts continue to point to that next major direction being to the downside. SPY 15 minute June 2nd Back on April 27th, in this post, I highlighted how plunges in the 5 day ema on volume in the SPY and other broad stock indices (either stand-alone reading or clusters of low volume readings) are typically followed by a correction. At that time, the 5 day ema had fallen [...]