Wednesday, June 17, 2015

Not Out of the Woods Yet...06.17.15

We were expecting a volatile day based on the FED meeting and the 11 AM blast off was timed to the minute of the FED release.  The surge was rapid and high volume but didn't hold into the close and the divergence of the ergodics and the ADX suggests that a goody portion of that volume was short covering and tomorrow we're likely to see the validity of the hypothesis.  Although M# and LM are now long SPY the 3 day low model is in cash.  We expect Friday, options expiration, to be volatile and close in the red.