Wednesday, February 6, 2008

Timer Digest Market Commentary

Timer Digest Market CommentarySocialTwist Tell-a-Friend
Fari Hamzei

Given that on Feb. 1st, the McClellan Oscillators for NYSE & NASDAQ went into a massive over-bought condition, the sell-off this week should not be a surprise to any avid student of our markets. Our current target is 1267 area on SPX (down to -3 sigma).

What was interesting is the intensity of big names being discarded, i.e., GOOG, RIMM, AAPL and CME. These were the darlings of Wall Street during the run-up last year.

Here is Sigma Channels for SPX Volatility Index (VIX): Given that we are still at +1 sigma, this leg down has ways to go (up to +3 sigma).

At this point, ceteris paribus, we fully expect the January lows to be exceeded (to the downside) since the reversal on Jan. 23rd did NOT come from oversold conditions and which told us (as we mentioned here before) the ensuing run-up will not be more than a dead cat bounce.


Disclaimer and Terms of Service

© Copyright 1998-2023, Hamzei Analytics, LLC. Hamzei Financial Network is published by Hamzei Analytics, LLC, Naples, FL 34112, (310) 306-1200. The information herein was obtained from sources which Hamzei Analytics, LLC believes are reliable, but we can not and do not guarantee its accuracy. None of the information, advertisements, website links, or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. Please note that Hamzei Analytics, LLC or its principals may already have invested or may from time to time invest in securities or commodities that are recommended or otherwise covered on this website. Neither Hamzei Analytics, LLC nor its principals intend to disclose the extent of any current holdings or future transactions with respect to any particular security or commodity. You should consider this possibility before investing in any security or commodity based upon statements and information contained in any report, post, comment or recommendation you receive from us. The content on this site is provided as general information only and should not be taken as investment or trading advice. Any action that you take as a result of information, analysis, or conclusion on this site is ultimately your responsibility. Always consult your financial adviser(s) before making any investment or trading decisions.