Category: General Market NewsSort
So much for resistance. Both the S&P 500 and NASDAQ blew through resistance levels, including their respective 50 day moving averages. The DJIA was the laggard, unable to breach overhead resistance and the 50 dma.
The VIX also continued its decline. It closed below 40 again after spiking on January 20th and making a higher low. It is quickly coming down to touch its 200 dma at 36.28.
There are daily setups GALORE in banks, financials, and real estate, many more than usual. Unfortunately, most are in unstable situations with one or two dojis in the previous two days. Further, there are many rising wedges on decreasing volume, and some of these doji-pairs are near or at daily resistance points which could become inflection points if broken.
Disappointingly, ValueVision (VVTV) announced today that they were unable to find any bidders for the company. Along with an expected bad Q4, the news caused the stock to end 44% down for the day but was at one point down over 50%.
With no sale in process, does this change my original thesis and catalyst? I’ll go through my thoughts later.
Get rid of SFAS 157, which works something like this: While my bank owns my mortgage, it's worth full value. As part of a Ginny Mae--- still full value. But once it crosses over into the ether of CDOs and other multi-level Frankensteinesque monstrosities, my paid in advance mortgage becomes indistinguishable.