You are saying stocks are cheap right now? What is the implication for the divergence in the MACD?
jangseohee
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hi Will,
base on the VIX chart, i get a mixed bed of explanation
1st: theoretically when VIX are pushed to 45-50 level, it signals market is in some kind of bottom (time to buy stocks) which i think it is (though SPX looks very toppy now)
2nd: if VIX can get to 100 level, i reckon the funds will buy massively
3rd: there ls an issue here.. in 2009 market bottom, macd short to overbought level of around 10, 2011 it only shot half of 10 and currently it is only about 2.2, i am wondering whether there is another lower low to push MACD oversold level higher.. thats my thought and suspicion
Will_Wong
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Good points! Either way, we could have made a killing with UVXY calls if we bought last week.
jangseohee
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which is why indicator is important to me to tally with the price
and need to compare them to historical data ^_^
when price and indicator doesnt tally or move in tandem, it becomes fishy to me
claydoctor
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watching how this china bounce effects today us markets and vix. I do not trust this rally. And if oil goes lower, fear factor increases over world economies. and dollar higher. Was looking for a 10% dead cat bounce, and then buy vxx calls sept. Hoping for the S&P to drop some 20% from May 18th high. IMO what do you think of that chance?
IvanLabrie
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China might be selling some more gold I think.
I very much doubt they can stop this bear market...
claydoctor
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<aybe we see a bit of a bump higher, then down again maybe second leg hard. Watching this momentum carefully.