Gotta love ZERO RISK in the SP500 = $$$

Discussion in 'Trading' started by makloda, Jan 27, 2007.

  1. s&p 1m chart looks like a bull flag

    3 times the charm? i'm a buyer with a break above 1915 but remains to be seen what happens after lunch
     
    #9341     Aug 26, 2015
  2. JTrades

    JTrades

    Same here (gold, anyway) although now tempted to take physical possession, considering the forthcoming shoe crisis.
     
    Last edited: Aug 26, 2015
    #9342     Aug 26, 2015
    londonkid likes this.
  3. Can you look into your crystal ball tell us which this is headed in next few hourso_O

    thx
     
    #9343     Aug 26, 2015
  4. S2007S

    S2007S

    FUNNY HOW THE MARKETS can be over BOUGHT for years and years and years and years but when it comes to OVER SOLD it should only last a couple of weeks to a few days....pisani said we are WAYYYYYY OVERSOLD!!!! HAHAHA



    Pisani: Another sign we are way oversold
    Bob Pisani | @BobPisani
    52 Mins Ago


    Once again, the markets have opened up strongly. We'll see if they close that way. In the last four trading sessions:

    1) A lot of stock has been sold

    2) A lot of protection has been bought

    3) Sentiment indicators are at historic extremes

    I struggle to describe how far some of these indicators have gone, but by any measure—option put/call ratios, movement in the VIX, or Relative Strength Indicators (RSI)—we are at extreme levels.

    Another indicator to look at is the 50-day moving average for the S&P 500, one of the most-watched technical indicators.

    According to our partners at Kensho, the S&P 500 is 4.35 Standard Deviations from its 50 day moving average.

    It's hard to describe how rare that is.

    To give you an idea of how far out we are, one standard deviation means that an event would occur outside the range 1 in 3 times.

    Two standard deviations one in 22 times.

    Three standard deviations one in 370.

    Four standard deviations 1 in 15, 787.

    4.5 standard deviations one in 147,160 times

    That's where we are, between 4 and 4.5 standard deviations. What has happened here statistically happens somewhere between one in 15,787 and 147,160 times.

    Meaning, like, almost never.

    Kensho's data only goes back to 1980. There has been one time this has happened: August 8th and 9th, 2011, which is when Standard & Poor's downgraded U.S. sovereign debt.

    In the following week later there was a notable snapback:

    S&P 500: up 7.5%

    Russell 2000: up 10.4%

    Energy: up 10.4%

    Materials up 9.9%

    That's a good sign, which makes complete sense.

    Of course, this is only one datapoint, one event. Which highlights what strange times we are living in.
     
    #9344     Aug 26, 2015
  5. I don't follow gold, is it just down big because the selloff in gold?
     
    #9345     Aug 26, 2015
  6. S2007S

    S2007S


    Very Nice.....Im just loading up because I know anything leading into a crisis, gold is always a little nice thing to own....once it breaks above 1200 and shorts begin to cover gold is going to skyrocket....Im not a gold bug nor bearish, just neutral. I just see it as a good time to add a little for a trade...
     
    #9346     Aug 26, 2015
  7. Ditch

    Ditch

    That idiot Pissani posted the same article after the first down day a week ago. Since then we sold off a mere 200 pts.:eek:
     
    #9347     Aug 26, 2015
    der_kommissar likes this.
  8. S2007S

    S2007S


    pisssini is always bullish, the economy can go into a full crisis and he will stand on the floor of the stock exchange saying just keep buying, one thing I love is seeing these fools during these markets drops, with over 6 years of non stop gains and a bull market that just keeps on going these guys have no clue what to do when things fall apart like they have the last week, now they have special programming at 7pm to keep you in the know of whats going on in the markets, like they are trying to calm those investors who went long the last 6 years to stay the course....this market is finally breaking, it took 6 years to get here but its finally happening, like I said the dow could get to 18,000, 20,000, 30,000 but the next collapse would take it all the way back to crisis lows below 10,000....
     
    #9348     Aug 26, 2015
  9. Ditch

    Ditch

    IMO there's only one guy on CNBC more annoying than Pissani and that is Jim Cramer. I can't stand his voice for even 10 seconds.
     
    #9349     Aug 26, 2015
    der_kommissar likes this.
  10. romik

    romik

    US prime time TV is about entertainment.
     
    #9350     Aug 26, 2015