SPY And VIX Higher Together ?

SPX Monitoring purposes; Sold long SPX on 7/2/20 at 3130.01= gain 1.5%; long on 6/25 at 3083.76.
Monitoring purposes GOLD: Sold GDX on 6/11/20 at 32.83=gain; long GDX on 6/8/20 at 32.79.

Long Term Trend SPX monitor purposes; Short SPX 5/13/20 at 2820.

Tuesday the SPY is higher along with the VIX which is a short term divergence. Tuesday’s rally to new short term highs came on lighter volume which is another divergence. Going into Tuesday the SPY is up 5 days in a row; suggests market will close higher within five days 83% of the time. Also July 8 (Wednesday) has a probability of being higher 78% of the time. A clue that market has reached short term exhaustion is when the Tick close above +700 and add that with other divergence could end up with a short term sell signal. Neutral for now. Sold long SPX on 7/2/20 close for a gain of 1.5%. 

Above is the 21 day average of the equity put/call ratio going back to mid 2003. Readings below .53 have marked worthwhile pull back in the SPX and the current reading is .518. July is the third worst performing month of the year and usually a down month. The market was up five days in a row going into Tuesday and market usually trades above the fifth high within five days; suggesting yesterday’s high will be at least tested. One clue that market has reached short term exhaustion and possible a short term high is when the Tick closes above +700 range. 

Disclaimer: Signals are provided as general information only and are not investment recommendations. You are responsible for your own investment decisions. Past performance does not guarantee future ...

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