Wednesday, April 09, 2008

Enter the Volatility Dragon

Click charts to ENLARGE.

More charts reviewed and here's today's theme: the Volatility Dragon awakes.



Can the Federal Reserve slay the volatility dragon? They wish they were the Bruce Lee of economic policy, but they are not bigger than the market.
Volatility expansion (HV6/HV100) exploration one...stocks with price expansion setups
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26 of 35 ETFs trading 5 million shares daily have volatility expansion setups. Most are above their 20 period average.
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ETFs that are highly liquid, with pivots, high, low, and EMA20
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Is consolidation at resistance failing? Today will go a long way toward showing the answer? Can major averages defend their 20 period EMA, and in doing so, the opening range of trading?
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Stochastics oversold data: NDX 6%, SPX 2%

Good trading and great risk management to all.

Educational use only. Never intended as investment advice.

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