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Problems with SVXY & Short Volatility ETNs (Preview)

By Lawrence G. McMillan

Short volatility strategies attract traders seeking profits during low or decreasing volatility periods, making them appealing in quiet market settings. This appeal has contributed to the renewed popularity of Short Volatility ETNs such as SVXY today.

Weekly Stock Market Commentary 3/28/2024

By Lawrence G. McMillan

The $SPX Index registered another new all-time closing high yesterday (March 27th) and another new all-time intraday high on March 21st. So, the bull market is still in place. $SPX has a strong support area at 5050-5180, an area where the Index traded in late February and early March. A close below 5050 would be viewed as quite negative by many traders, and we would expect that sell signals would emerge from our indicators if that happened.

Weekly Stock Market Commentary 3/22/2024

By Lawrence G. McMillan

This market continues to show an amazing amount of bullish strength. After having trouble at the 5180 level for about a week, $SPX broke on through after the FOMC meeting and is trading at new all-time highs once again. The 5180 levels is now support. There is further support at 5050, and since $SPX did some "work" in that 5050-5180 area for a few weeks, it is a solid support area throughout as well as the launch pad for this new leg of the rally.

Weekly Stock Market Commentary 3/8/2024

By Lawrence G. McMillan

This market just keeps rolling along. It is overbought, but that's probably a good thing rather than a bad thing. As the noted Smith Barney technician, the late Alan Shaw, said "The most bullish thing a market can do is get overbought and stay there." That's what this market is doing.