Friday, July 20, 2012
Thursday, July 19, 2012
Wednesday, July 18, 2012
Tuesday, July 17, 2012
Chart 1 (below, taken at 1213 CT) gives a more robust picture. At 1020CT timeline, we did NOT have VIX Sept Put/Call Ratio drawn when we alerted everyone via our MSA Email List Server.
By 1213 CT (Chart below) when we added Sept to the July and August plots, it soon became very clear that we were entering a very strong bullish period.
Notice the volume of total contracts traded on that day:
475K (for a Summer Thursday that happens to be 2nd week of July).
It is not in an Expiration Week nor a FOMC Day nor ahead of NFP Friday. By the end of the day over 758K VIX Options contracts were traded with over $134 Mil in premiums changing hands. Indeed it was a very big day for the market.
Typically, a VIX Dollar-weighted Put/Call Ratio Signal, BUY or SELL, has about one-day shelf-life. This has to do with settlement mechanism inherent in the underlying asset and its derivatives.
That evening, we noticed a number of "hammer candlestick" formations on key market indices. We mentioned that on @HunterKillerSub, our Market Timing Twitter Feed. Hammer candlesticks are very poweful bullish signals.
Next day, Friday 13th, 2012, S&P500 Sept Emini Contract opened at 1332 and rallied to reach 1352 by the Close.
That is 29 handles since our MSA Alert went out. Indeed these two days were wonderful trading days.
Here are the snaps for VIX Dollar-weighted Put/Call Ratio Table and Chart for Friday July 13, 2012 an hour before the Futures Close.
Posted by Hamzei Analytics, LLC at 7:00 AM
Disclaimer and Terms of Service
© Copyright 1998-2015, Hamzei Analytics, LLC. Hamzei Financial Network is published by Hamzei Analytics, LLC, 11 N Green Street, Suite 4C, Chicago, IL 60607, Admin@HamzeiAnalytics.com (310) 306-1200. The information herein was obtained from sources which Hamzei Anlaytics, 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.