10.02.2008

THE LOWS


Sorry for the lack of posts - too busy shorting covering and reshorting as the day gave many opportunities- QID TWM DXD etc.


It was an awful day but I suspect we are again nearing a short term bottom- after all how many -4%/5% days can one have.


The worst sectors included metals, ags, gaming, oils, trannies and real estate while drugs telecom and utils closed down the least.


NYSE -2150 net losers;

NAZ- 1830 net losers;

NDX- 5 GREEN;

OEX- 10 GREEN;


VIX- 45.25 and 13.7% higher - also about 20% above the SMA 10;


Volume was fairly light with Down volume about 8X the up;


The places to hide today- consumer non-durables such as CLX HNZ K KFT KMB PG ABT;


FWIW - the SPX is again about 10% below its SMA 50 and the adv/decl lines are very oversold so a bounce from these levels is very likely. The last times the SPX was this far stretched from the SMA 50- Jan 22, July 15, Sept 17 - usually followed by a bounce of about 75 points over the next week or so.


RSI (2) levels:


SPX -17

DJIA -23

NAZ -17

NDX -18

RUT -12

MID-13