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Tim: Investors should embrace volatility and trade the ranges – $QQQ, $SPY

By - - Market Sentiment on October 5, 2015 12:10 PM Follow-Ups

Dan we are not trading on Macro.  If we were the Fed Funds rate would be at least 100bps higher.  We are trading on credit fears, Fed fears and China fears.  But remember I don’t think the world is coming apart at the seams.  I do think there is plenty to be cautious about and most of it is price action and markets that have seen central banks shield them from volatility for 6 years.

When China closes, the Fed is removed from the picture with a terrible jobs print and the VOW and Glencore situations can appear like one-offs the world is a better place for traders.  And traders are the only ones active  these are not high volume moves.

But I think you understand that and therefore I think what you are saying is the $106 on $QQQ and $200 on the SPY are major levels of resistance to trade form the short side.  I agree.

Screen Shot 2015-10-05 at 10.07.31 AM

SPY 1 yr from LiveVol Pro

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QQQ 1 yr from LiveVol Pro

Earnings season, and China will give you fresh ammunition to buy these back lower.  There is NO QUESTION investors should embrace volatility and trade the ranges.  You will get multiple bites on the cherry.

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Dan: Remember what you are celebrating – $SPX

By - - Market Sentiment on October 5, 2015 10:45 AM 1 Follow-Ups DanInitial Since Friday morning's September jobs data the S&P 500 futures are up about 3% (including this morning's 70 bps gains) as investors celebrate unexpectedly bad economic data. This morning, European equities are ripping (the Euro Stoxx 50 is up 3%) on weaker than expected PMI data: I want t... Read More →
This is Part 3 of a 3 part Debate on Market Sentiment