studying stock market trends
Signals are setting up to change course
The volatility spread is turning up. Crossing its moving average would trigger a bullish signal.
The synthetic volatility spread that is calculated for this particular chart is turning up too, although it appears farther from a bullish signal.
The discretionary/staples spread turned bullish on 4 February. I am not quite ready to adopt a fully bullish outlook, but I did establish some deep in-the-money call spreads in honor of market strength today.
Leave a Comment
Financial markets are predictable because segments of price action fit together in a limited number of patterns that are not random. Markets are unpredictable too because there is enough variability in the patterns to hide the trend at some stages of development. I am fascinated by the market and spend a lot of time working to identify price trends so I can exploit them for profit.