Up Up and Away

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Chinese lanterns float into the night in Taiwan.

RUT up 8.85 USD; the RVX came down by the end of the day to finish -2.02%.

The big shocker remains GOOG, +13.96 USD; the volatility for Google, VXGOG, went up as well to finish the day +8.73%.

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Google daily with volume

Google is extended from the 21 day exponential moving average– an average used by CAN SLIM traders. The uptick in implied volatility is very minor, coming off the bottom. Nonetheless, it does indicate protective options are being bought for now. Earnings are scheduled for April 18.

My delta/theta ratio remains in line; the only problem is the deltas are short, and this market is a real floater. Caution remains the better part of valor.

Tomorrow could begin a consolidation at this new level. Note that many market traders keep their eyes trained on SPX 1535, as the measured move from the recent consolidation break through. SPX closed at 1530.94. I would expect some more churn. SPX is also sitting nicely upon the 10 day simple moving average. It hardly appears extended. If it runs up similarly tomorrow, I would expect it to be pummeled into line by short sellers.

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As always, stay cautious; we know not where the next fall will appear.

over the edge

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