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Wednesday, July 15, 2009

Mix signals

Talk about a mix signal... there are plenty of signals to indicate we are breaking out. Most importantly the XLF has broken from the negative trend I pointed out in the last post.

However, the VIX is up fairly nicely today. It is up while the market is up. I always get uneasy when I see this. And what makes it worse is that today is a Wednesday. I do not recall any index reshuffling going on on Wed.

This to me raises an eyebrow, and will probably force my hand at some light SPY short-term protection. (via the Sept 95 puts) If we rally into the close I will enter a few puts, and will cover them on any kind of relative market dip. (The day trader in me tells me 920 on the SP500 should be my covering point... FYI, this protection trade will basically be a day-trade.)

No time to post charts... will do it later tonight to showcase what I see. (I will also explain later why I have little time to upload charts during the day anymore.)

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