Blog Archives
Hog Heaven
December 20, 2010
Good morning. Even though the SPY had several minor up days last week, as the market continues its gradual but steady rally, it actually closed down 18 cents to finish at 124.30. This is due to the 60-cent dividend that came out on Friday morning.
A Hot Mess
November 29, 2010
Good morning. The market retreated a little last week as people headed to the malls for what most prognosticators predict will be a solid holiday buying season. The SPY finished down 1.39 (1.2%) to close at 118.80, almost all of which happened during the half-day session on Black Friday. What was supposed to be a sleepy day turned out to be just that, a sleepy day, except the market opened down around 1% and stayed right there until the close.
What Ever Happened to Mayberry?
November 22, 2010
Good morning. There was conflicting news in the market last week that had the market moving fairly violently on an intraday basis, only to close almost exactly unchanged. The SPY closed up a whole .09, at 120.29, after trading as low as 117.59 on Tuesday. The VIX closed down a solid 12% at 18.04, reflecting confidence that nothing bad will happen in the upcoming Thanksgiving week, or maybe for the rest of the year. Normally that would be the case, quiet trading before and after the holiday, but the recent few years have been anything but normal.
Skewed Volatility
October 11, 2010
Good morning. The Federal Reserve gave us another strong market last week, with the SPY up 1.93 (1.7%) to close at 116.54. That is the highest close in the SPY since last May 12. The VIX was down sharply on the week, closing at 20.7 (down 8%), which is the lowest closing since May 3 of this year. Again the investing public appears comfortable with the price of insurance on the market decreasing as the market advances, something that, to me, has always seemed counter-intuitive.
Crisis of Competence
September 20, 2010
Good morning. Firstly, I extend an invitation to all of you: If you are interested in learning more about my managed money program, the Protected Index Program (PIP), PTI Securities & Futures is hosting a no obligation, no-pressure, complimentary In-Office Protected Index Program Seminar on Saturday, October 2nd, 2010, in a classroom overlooking the CBOE at PTI’s Chicago Loop Office from 9:00am to noon. A continental breakfast, coffee bar and classroom materials will be provided. Topics covered include: review of option basics, investment program objectives, diversification solutions, SPY basics, index portfolio examples, option time decay and PIP portfolio example, strategy expectations and objectives and longer-term fixed income products. Space is limited and all attendees must register at www.PTISecurities.com/Education.htm – Come out, have a cup of coffee with me, and meet some of PTI Securities’ experts.
It was another positive week for the overall market last week, as the SPY finished up 1.01 points to finish at 112.49 (1.1%). This level, roughly 112.50 to 113, was reached both in late June and early August, only to fall back. Will the third time be the charm for the bulls? The VIX was essentially flat on the week, hovering right around 22, and interest rates inched up a very small amount (TYX up .04%).