Just when nobody is watching, stocks look done.

Here’s a 10-day shot of the Dow — see the broken trendline and failed retest, and note that ramps in DSI only result in weak price moves:

Source: prophet.net (still loving their charts)


The 5-day equity put call ratio is giving a louder sell signal than a few days ago:


The VIX has been bleeding downward momentum and flattening out, much like the dollar this autumn before it started its violent reversal:

Source: yahoo! finance

Here’s the dollar vs. the euro:

Source: yahoo! finance


I am now short stock indexes and calls, long VIX futures and long puts. It appears highly unlikely that stocks press much further here, and there is a risk of an abrupt decline in the coming weeks — all it would take is the slightest scare to trigger a stampede.

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2 thoughts on “Just when nobody is watching, stocks look done.

  1. Good grief! I just overheard this on Bloomberg: “When you take football away from the American public, senators are going to react.” This is in reference to John Kerry interfering in the Fox / Time Warner Cable dispute. How in the hell is this Congress’ business?

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