Tuesday, September 8, 2009

Market Observations

VIX was up today...the whole day including from the gap up. Utilities Continued their lackluster hold of support at their channel. XLF head and shoulders are progressing nicely. Breadth was not great today...2.9 to 1.

The story of the day was the dollar which fulfilled the Ending Diagonal potential that I have previously discussed. There could be a small throw over...but overall the Dollar's down move looks finished and counts pretty close to complete. Therefore, this up move in the market is on VERY thin ice. I had been worried that the move down in the dollar could be time consuming...but am pleasantly surprised that it essentially hit my targets in 1.5 days. That shortens this rebound in the stock markets considerably.

DBA was down today regardless of the dollar and Oil traded weakly even though it was up. I was trading oil and made most of the money shorting it.

 
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