Deviation Today

Discussion in 'Stocks' started by Comanche, Jul 16, 2007.

  1. Notice that the VIX is actually up today with the broad market higher. This is deviating from what we normally see with a rally. Lately the VIX has been getting hit with rallies. Wonder if this is is a subtle little topping sign?
     
  2. Yes but remember, these deviations and divergences can occur for weeks before a breakdown actually occurs. It's a sign of technicals weakeniing and to be much more cautious, not a sign to go 100% committed short
     
  3. ...except for a few solar daytrades, I am 100% short and in puts. My BHI puts have done very well, I have doubled my money on CC and RSH puts. Quite a few choice short positions out there.

    I am profitable on all trades.

    http://stockcharts.com/charts/gallery.html?$NAA50

    According to the above chart, quite a few stocks trading under their 50 day moving average. Lots of oil service stocks breaking down. Lots of opportunity.

    I say go short in the indexes that are breaking down. Just because RIMM keeps going up doesnt mean there are no short candidates.