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#1 arbman

arbman

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Posted 21 February 2007 - 12:00 AM

All of the major indices from RUT, INDU, OEX to RUA closed negative for the day if adjusted by the implied volatility, yet the implied volatility is at a record low territory...

Now, the technology was not one of the outperforming sector in the S&P's 9 sector groups today...

http://ichart.finance.yahoo.com/z?s=^GSPC&t=1d&q=&l=off&z=m&c=^IXY,^IXR,^IXE,^IXM,^IXT,^IXV,^TXV,^IXB,^IXU&.png


But, the NDX nearly outperformed all of the other large cap indices...

http://ichart.finance.yahoo.com/z?s=^GSPC&t=1d&q=&l=off&z=m&c=^NYA,^RUT,^NDX,^IXIC,^NDXE,^DJI,^SPXEW,^MID,^SML&.png


However, if you look into performance of the NDX components, the index's non-tech ones outperformed, they are still the liquidity driven and not defensive ones though...

http://ichart.finance.yahoo.com/z?s=^NDX&t=1d&q=&l=off&z=m&c=^NDXT,^NDXX,^NDXE,^XSH,^HHI,^XWH,^IWH&.png


The NDXX represents the index components excluding the tech companies.

Having said all of this, one can not dismiss this rally as an overthrow because the consumer discretionary and staples, utilities as well as the financials rallied. The internals are fine, RUT also participated well. This is how the IT legs can usually start. The increased volatility might be simply because of the high rates too.

Heck! as much as I opened new shorts on the indices, I also bought some individual longs today, perhaps it was the top... :D

- kisa