Monday, October 25, 2010

Market comments for Oct. 25th

Are we all excited today to see that the G-20 ended their Finance Ministers session agreeing to "try" no to do harm to each other? Traders seems thrilled today as the Dow is up about 65 points at this hour and going above the 11.200 level I said we would get to back in mid September and it may even go to the 52 week high of 11,258 before the elections.

However, I caution all you believers that this is a real Bull market Rally that Friday was the lowest Volume day since last December. When can you remember an October where Volume was so low? I can't! The Volume has disappeared this month and the Volatility Index is hitting lower lows each day, it seems, although today it is up a bit. About 10 days ago it was as low as 18. From a historic perspective, it has been much lower over the past 10 years. It was as low as 10 from about 2005-2007 and signaled the quiet before the storm which followed. In 2008 it soared to 90. So we are by no means at the lows on the VIX. But there seems to be a quiet before this election and many analysts believe that the election is already baked into the market and most likely it will selloff just when the news is in on the results. You know, it's that old "buy on the rumor and sell on the news, game.

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Anonymous Anonymous said...

MY tza purchases that were made some time ago are looking rather sick at this point in time. Why is this market not playing like it should be? Will I ever see a positive reason to be holding tza again?

6:10 PM  
Blogger Charles Amico said...

Here's the dilemma, I believe the market is being manipulated to keep it up. This is something relatively new in the past year. I have no evidence to support this but others are asking the same questions I am. So here is a link to a video clip where Rep. Grayson of Florida is questioning the Counsel for the Fed at a committee meeting. Listen to it and then post another comment if you like. You will need to copy and paste this URL on a single line.

Thanks for your comment.

6:41 PM  

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