Here Comes the Buying...

Counting on NP to give us one more week of great buying opportunities.

It should be obvious to everyone now- but, apparently it's not, the FED's roadplan. Their first task was to stabilize the bond and money market. The second stage will involve outright purchase of securities and in the third stage they will drive gold, silver and cryptos to oblivion.

Yet, there are people that don't see that.

Edited by redfoliage2, 23 March 2020 - 08:47 PM.

I see this is going to be a trending up night in the index futures ................

I think it will get ground pounded one more time tomorrow.

 

I see this is going to be a trending up night in the index futures ................

I think it will get ground pounded one more time tomorrow.

 

It could, but if SOX is still above 1350 after first hour, the first big swing bottom may be in.

 

 

I see this is going to be a trending up night in the index futures ................

I think it will get ground pounded one more time tomorrow.

 

It could, but if SOX is still above 1350 after first hour, the first big swing bottom may be in.

 

VIX told all.  It dropped below the 10 dma by the close today and after cash closed the VIX future dropped another 4 points.  Big bounce coming in the next two days.  Think about it:  What they are going to buy with the free money from the Fed?  Stock market follows liquidity, not the economy and this is how the game is played  ...............

Edited by redfoliage2, 24 March 2020 - 12:11 AM.

From last night's comments.

Conclusion
Last time, I said that the lack of capitulation by the amateurs was bothering me and we see that was rightly so. We noted that the Relative VIX is way, way up into record territory which we thought would be very tempting for someone pretty soon. I think that this is still the case. As I look at the VIX falling despite a weak market and a sharp drop in the P/C's, I get the feeling that the "fix is in"--i.e. that some big players are covering up some shorts and positioning for a rally and a collapse of implied volatility. Obviously, we can't know this for sure, but the market  has fallen so far, so fast that it may take a bit more to unwind shorts or short-biased trading programs and hedges. We noted that Non-Financial CP seemed to have spiked and tonight, we see that Financial CP has spiked as well. The differential is benign, but yields are up quite a bit. That is understandable given the situation, but this may imply some defaults may be coming. Trading today was wild. It looked for a bit like they were off to the races, but then the market pulled all the way back to test the lows, only to rally again, and pull back again to test. That's a prescription for whiplash! A trader who caught all of those swings made not only this years nut but next years as well. For all that volatility we have an Options Oscillator Sell, which has two days to get right. We also have a VIX P/C Buy.I'm pretty confident that the new normal will make both signals right tomorrow. My gut is telling me that we have a nice rally coming. I'm pretty confident that it's going to be tricky to buy.

From last night's comments.

Conclusion
Last time, I said that the lack of capitulation by the amateurs was bothering me and we see that was rightly so. We noted that the Relative VIX is way, way up into record territory which we thought would be very tempting for someone pretty soon. I think that this is still the case. As I look at the VIX falling despite a weak market and a sharp drop in the P/C's, I get the feeling that the "fix is in"--i.e. that some big players are covering up some shorts and positioning for a rally and a collapse of implied volatility. Obviously, we can't know this for sure, but the market  has fallen so far, so fast that it may take a bit more to unwind shorts or short-biased trading programs and hedges. We noted that Non-Financial CP seemed to have spiked and tonight, we see that Financial CP has spiked as well. The differential is benign, but yields are up quite a bit. That is understandable given the situation, but this may imply some defaults may be coming. Trading today was wild. It looked for a bit like they were off to the races, but then the market pulled all the way back to test the lows, only to rally again, and pull back again to test. That's a prescription for whiplash! A trader who caught all of those swings made not only this years nut but next years as well. For all that volatility we have an Options Oscillator Sell, which has two days to get right. We also have a VIX P/C Buy.I'm pretty confident that the new normal will make both signals right tomorrow. My gut is telling me that we have a nice rally coming. I'm pretty confident that it's going to be tricky to buy.

I agree think there will be a rally but I think volatility is here to stay for awhile although I still can't get over these put prices,,, Aprils 1500 put traded at $17.75 yesterday, with todays rally has dropped to the $2 range.  That's showing pretty negative sentiment for sure!!  Thanks god I only sell them lol!!

Edited by 12SPX, 24 March 2020 - 09:23 AM.

Snd on the other hand you've got the 2000 put closing at $62.00 yesterday, with todays measly rally its dropped to the $30 range, was an amazing selling oppurtunities, buy it back now your done for the month!!

Definitely done for the month in the family IRAs....

Stuff we loaded up on up in The Great Travel Panic of March 18 2020, when TVIX hit 1000, just dumped on the spike up for 60-100% gains in a holding period of of less than 4 days total...Sold NCLH for a full double, RCL for 90%

Hotels not quite that good, but still over 60% gains just booked in HLT and MAR.

Probably leaving a bunch on the table, but why be a pig?

Hopefully we get another selloff after these clowns finally approve the rescue package and can reload cheaper.

Edited by K Wave, 24 March 2020 - 09:50 AM.