Market Nears First Key Test

Joe Corona

I would expect the market to back and fill as we approach these levels because this is probably the first level from which the bears will launch a significant counterattack. When we get there it should be a significant battle with a lot of heat, noise, and volatility (more)

Guerrilla Warfare

Joe Corona

I think it would be wise in here to slip into hit-and-run mode, keeping the powder dry until the market decides what it is going to do. Daytrading for chip shots in both directions is probably the game plan for the next couple of weeks. Option traders may once again look to establish short volatility positions as well. Also, keep in mind that it is August, and sometimes the best trade is t (more)

Presenting: Sir Bubblus Maximus

Joe Corona

We are opening higher again this morning, so keep an eye on volume today, if it gets slow we may slip back into the “two days and out” mode that has marked the rallies in this bear market. If volume is decent or even increasing we might have something. Today might be a great day to just watch the market, and let it tell you what it is going to do next. (more)

Dollar Telegraphs Market Bounce

Joe Corona

Late in the day yesterday there was a disconnect between the stock market and the FX market where the dollar was making new highs while the market was making new lows. I noted this activity in an afternoon alert and stated: “Dollar closes on the high while the market tanks…I smell a rat, keep a tight (more)

The Bear Is In Charge

Joe Corona

The market is set to open lower this morning on the back of follow through from Friday and weakness in Europe. Evidence that economic growth is stalling has led to heavy selling this morning in Europe with DAX getting pounded for almost 4 % at one point. In the U.K. factory production fell at the fastest rate in over two decades, and the FTSE is down about 1.5 % at the moment. The reason I am mentioning weakness (more)

'Puttin’ On The Foil Coach…'

Joe Corona

Today should be a daytrader's delight. If this market opens very far from unchanged in either direction I will be inclined to fade it, and although I am a bear, I am prepared to take what they give me and play it from both directions. Volatility is jacked up again (see the VIX (more)

Tape Painters Muddy The Waters

Joe Corona

I don’t want to rant too much about this, but this month-end tape painting just helps to build the perception that the stock market is a rigged and crooked game, and I would like to see some of the players of this month-end charade paraded around in cuffs someday, like the Rigases. That being said, the fact that they were able to get away with jamming the (more)

Honor Thy Bear

Joe Corona

One sector that I am very leery of is the semiconductor sector. While other sectors have put together some very nice runs, the semis have merely staggered up off the canvas and are still wobbling around the ring. One stiff jab and they’re back on the canvas. (more)

Too Fast Too Soon?

Joe Corona

Rather than dwell on yesterday’s gains, percentages and sectors, I would like to look at volatility. No matter how you measure it or which index you follow, implied volatility was absolutely slaughtered yesterday. The VIX (below) lost 6.72 points to close at 33.72, down 16.62 % on the day. It was just four trading days ago that the VIX was challenging the September highs above 55.00! The VXN (second chart (more)

Opening Higher, Volatility Sellers Licking Their Chops

Joe Corona

Monitor the BBH for a breakout of the Thursday / Friday consolidation range of 73.80 – 78.15 (probably upside based on the market profile) and then get with the action. A shot at 82.00 – 85.00 could be in the cards (more)