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After the latest euphoric bid in the market, due to the emotional response of investors cheering on the toppling of Saddam's statue, the ETFs got a grip on reality, and maybe gravity as well, and decided to head towards lower supports in Wednesday's trade. Today's action thankfully brought about some intraday volatility, although the 1 level volatility bands were still hard pressed to trigger. With the indices reversing course though, the markets finished down between 1 and 2 percentage points, and into an area of support that just might hold a bull on all fours, at least temporarily.
Signals are now triggering in the VIX and VXN as we close out the session at the first level of price supports in the ETFs. More significant levels are about a percentage point lower, but today's action off this uppermost range of support, along with intraday technical setups in the form of 1,2,3 have our little "delta neutral strategy" taking in some of our short stock near closing prices. So far this has produced essentially breakeven results, but with the first hedge now off the table, tomorrow should provide our first opportunity to realize some gains, with still seven trading days left to play the position. With the hammer off the volatility bands in the VIX, I would love to push the envelop so to speak, but a little bit of the prudent man at work, along with respecting price and volume first will always keep us spread, and ahead.
Points of Significance:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX | 30.91 | Up 1.32 | CVR 1,2,5,6 SELL | 2.92% Below | Not At Extreme |
| VXN | 41.45 | Up .53 | CVR 2,6 SELL | 1.85% Below | Not At Extreme |
Abnormal Options Volume -- This list includes both percentage movers that are normally associated with an increase in options activity, as well as stocks that have unusually high activity and / or technical situations, reflecting increased speculation of a potential price move.
| Name | Symbol | Net % Change | Volume | Avg. Volume |
| Yahoo | ADI | -4% | 67980 | 21700 |
| Electronic Data Systems | EDS | -2% | 9202 | 2446 |
| Cheesecake Factory | CAKE | -1% | 1934 | 385 |
Stocks With Spikes in Implied Volatility -- Stocks with Increases and Decreases in implied volatility compared to previous day. Candidates are then screened qualitatively. These lists represent those issues that carry a blend of liquidity and/or technical setups that might deserve further notice.
Spike Up
| Name | Symbol | IV | Previous IV | High IV | Low IV |
| Accredo Health | ACDO | 73.2 | 65 | 72 | 44.2 |
Spike Down
| Name | Symbol | IV | Previous IV | High IV | Low IV |
| Altria | MO | 65.2 | 71.5 | 69.6 | 20.1 |
Please use stops on every trade!
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