Wednesday, July 8, 2015

Close but no cigar - Market update

Previous market update here

After that ~ 50 point SPX swing from bottom to top, it is easy to assume that all term signals have changed to "buy". No, not yet, from my analysis. VST signal changed to buy, but ST and IT remain on a sell. Our options indicator suggests that we are close to a turn but we will wait for our other signals to confirm.

I have closed all but 25% of my ST short position. The 25% will remain till the time to flip to buy signal comes over. 

If you are short on the ST, this options indicator should be a warning to you that you should pare your positions on plunges.

VST - Buy
ST/ IT - Sell
LT/ VLT - Buy

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