Market breadth is weakening and NQ along with SOX not making new highs today, diverging with ES and YM. VIX and VXN relative to SPX and NDX showing the same kind of unbridled enthusiasm that killed the markets this summer. Even though we have not reached the lows of late July in VIX and VXN, the gap between volatility and index is actually wider, meaning we are even more extended sentiment-wise (see link). QQQQ p/c ratios for December strike shows excessive call interest from 41 on up, with only some put support at 40. This is just not the time to go long for more than a daytrade. If you rode this train, pat yourself on the back for a job well done and cash your chips, at least until we get a better idea of how shoppers will behave. There is no room for bad news and there could be some coming courtesy of Mother Nature (yes, she's back), with a severe cold front moving in for the weekend. That means higher oil and less shoppers. Cash is a position.
This entry was posted
on Monday, November 21, 2005 at 6:05 PM.
