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Buy signals remain in place

By Lawrence G. McMillan

MORRISTOWN, N.J. (MarketWatch) — Three week ago, we wrote that strong buy signals were in place . For the most part, those buy signals remain in place today. Therefore we continue to look for higher prices ahead.

Lawsuit over TVIX: Another display of the “nothing is ever my fault” philosophy

By Lawrence G. McMillan

In yet another display of the  “nothing is ever my fault” philosophy, a class action lawsuit has been filed against VelocityShares and Credit Suisse on behalf of anyone who purchased the Daily 2x Long VIX Short-term ETNs (TVIX) from November 30, 2010, through March 22, 2012.  

TVIX shares were first issued on November 30, 2010, so the lawsuit covers nearly the entire length of time that they have existed – from day 1 through the day that Credit Suisse began issuing new shares again (this past March). 

Weekly Commentary 7/6/2012

By Lawrence G. McMillan

$SPX broke out on June 29th, and has since added togains, exceeding the early June highs. This creates the bullish pattern of higher highs and higher lows on its chart. $SPX could easily challenge resistance at 1390-1400 in the immediate future.

Equity-only put-call ratios remain on buy signals.

Market breadth was very strong again, and now the breadth indicators are on buy signals but are quite overbought.

In focus: Bullish breakout

By Lawrence G. McMillan

In a somewhat classic move, “everyone” was bearish and yet the market broke out to the upside. The most recent upside move kicked off in earnest last Friday, after yet another apparent agreement in Europe.

What's Influencing Volatility Pricing?

By Lawrence G. McMillan

With so many volatility derivatives and products available for trading now, a debate has arisen as to what is influencing their pricing.  Is it actual volatility expectations, or is it supply and demand – or possibly something else altogether?  It is important to understand these relationships for several reasons, the most obvious of whish is that it can help one to construct theoretically profitable trades.

Weekly Commentary 6/29/2012

By Lawrence G. McMillan

$SPX is back down into its previous trading range. The broadest measures of the $SPX trading range now show support at 1270 (the early June lows) and resistance at 1360 (the mid- June highs).  There is also support at 1305-1310, where $SPX has registered daily lows several times this month.  The 1335-1340 area is now resistance once again.

Equity-only put-call ratios remain on buy signals.

At the current time, breadth indicators are on buy signals as well.

Weekly Commentary 6/22/2012

By Lawrence G. McMillan

The stock market had just about everything going for it in technical terms this week, but then the fundamentalists delivered a nasty blow today (Thursday, June 21st). Technically $SPX is just below the support level of 1330-1340.

Equity-only put-call ratios remain on buy signals, despite Thursday's large decline.

Market breadth was very poor on Thursday.  As a result, both breadth oscillators registered sell signals.

In focus: Buy signals in place

By Lawrence G. McMillan

The stock market finally responded to a broad set of positive technical indicators and has broken out to the upside. The individual pieces began to fall into place last week, with the last piece (VIX closing below 21) occurring this past Monday. This should pave the way for a strong intermediate-term rally.

Strong buy signals are in place

By Lawrence G. McMillan

MORRISTOWN, N.J. (MarketWatch) — The stock market has an extremely impressive set of buy signals going for it. If the bulls can’t capitalize on this, it’s not clear if they ever will.

Weekly Commentary 6/15/2012

By Lawrence G. McMillan

he technical picture continues to improve -- especially in the area of put-call ratios.  However, $VIX is still elevated and $SPX is still trapped in a trading range.  We need to see improvement in those areas before intermediate-term buy signals can emerge.  $SPX is trapped in a trading range, with resistance at 1330-1340 and support at 1305.

Equity-only put-call ratios have now confirmed their buy signals.

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