Intraday Compass

  • Breadth has been the best short term tell for the market and today it is supporting it.
  • The dollar is getting pummeled, which is also supporting the market.
  • Call buying is extreme thus far.
  • The banks are down, while defensive sectors are once again outperforming.


nicasurfer said...

Why do you think someone would have bought all those out of the money calls?

Sort of risky don't you think

Tsachy Mishal said...

Taken at face value, I guess they were very bullish.

The question I asked myself is why execute such a large trade on a thin trading day? If I had a big order I would execute it on a day with more liquidity so I could get the best price. Unless, I wanted to influence the market.

Chaos! said...

Back to Rydex-What numbers do you use to evaluate sentiment there?

Tsachy Mishal said...

On they add up all the money in the leveraged bullish funds and plot it vesrsus all the money in the leveraged bearish funds. I look at that.

I also look at all the money in the bullish funds vs bearish funds, which includes leveraged funds and unleveraged funds.

It likely takes a bit of work to replicate what sentimentrader does. I wrote them to ask if I can post their charts from last night, so I can show everyone but they still have not answered me. They might be on vacation.

nicasurfer said...

They sure are piling out of GS today

nicasurfer said...

Bonds are screaming here