Friday 8 May 2009

The Big Boys are playing

Looking to the action yesterday we notice how the market is eager to go down. As an example we take the Direxion Daily Small Cap Bear 3x Shares where: look to the surge of volume yesterday. Not normal.




It’s Bespoke Invest who is dissecting this market in details:

Today was one of those rare days (at least based on the last two months) that the market declined. While the index was down a little more than 1%, the average stock in the index was down more than 2%, which indicates that the largest stocks in the index held up better than the smallest stocks. We also broke the index into deciles (50 stocks in ten groups) based on their performance from the start of the rally through yesterday's close to see how they performed today. While the very best performing stocks during the rally actually held up okay today, the 2nd, 3rd, and 4th best deciles were down big today. The two deciles of stocks that were up the least during the rally were also down the least today.



What do we learn: the pro’s are playing this market very well.
Ok, lads, this was the week, see you all in the pub for a good beer. Enjoy…
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