Billy
01-05-2012, 02:47 AM
As a reminder, the IWM and GDX cluster files are now automatically updated on the robot pages.
Under the surface, the 20 DMF was pretty strong during what looked like a day for nothing. With the OB/OS closing above 30, the fail-safe neutral signal triggered and the IWM robot will cover its short position at the open because it found no statistical edges for holding it into a neutral signal.
12161
The main reason for the lack of edge in the short trade is a low ATR which has a bullish bias. This is confirmed by a low VIX level for many days in a row. Interestingly, the CBOE future implied correlation index broke all supports yesterday, which indicates that if hedge funds may not be buying yet, they are increasingly de-hedging their long positions in more individual stocks and become more selective. Clearly fear of an overall market collapse is starting to wane.
12163
I must leave for important external appointments and will post an updated chart for GDX later today. Nothing is changed for the GDX position and outlook.
Billy
12162
Under the surface, the 20 DMF was pretty strong during what looked like a day for nothing. With the OB/OS closing above 30, the fail-safe neutral signal triggered and the IWM robot will cover its short position at the open because it found no statistical edges for holding it into a neutral signal.
12161
The main reason for the lack of edge in the short trade is a low ATR which has a bullish bias. This is confirmed by a low VIX level for many days in a row. Interestingly, the CBOE future implied correlation index broke all supports yesterday, which indicates that if hedge funds may not be buying yet, they are increasingly de-hedging their long positions in more individual stocks and become more selective. Clearly fear of an overall market collapse is starting to wane.
12163
I must leave for important external appointments and will post an updated chart for GDX later today. Nothing is changed for the GDX position and outlook.
Billy
12162