Smoking Securities

Half Baked High Finance

Digesting Indecision

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Not much action in the equities market this week.

BPSPXVIX081226

According to my indicator, the SPX has managed to stay bullish, but it is very close to resuming a downtrend.

BXMSPX081226

The buywrite/index spread is rising (bearish), but it is in a resistance area, and any turn around would be bullish.

NAMO081227 

The NAMO has turned positive, which is good for equities.

NASI081227 

The summation index continues to rise, another reason to be positive on stocks.

USBGOLD081226 

Finally, the 30Y Treasury is beginning to show weakness relative to Gold.  This may signal an end of deflationary fears.

 

Until volume returns to the market, any move should be view with suspicion if you’re a trend trader.  Equities remain range bound, so I’m focused on opportunities in fixed income.  I suspect the primary direction of 2009 will be revealed within the first two weeks of January, so I will continue to sit patiently, watch Twitter and play the Ukulele during market hours.

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Written by chucklesamadeus

December 27, 2008 at 12:47 pm

Posted in BPSPX, BXM, Gold, NAMO, NASI, SPX, USB, VIX

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