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.
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.
By Lawrence G. McMillan
The stock market, as measured by the Standard & Poor’s 500 Index failed to hold on to the upside breakout of last week and is now back in the trading range that had previously contained the market for a month or so.
The range is a bit wide now, with resistance at the June highs of 1,360 and major support at the June lows of 1,270. There is also support in the 1,305-1,310 area. All three are marked on the chart below...
By Lawrence G. McMillan
So for the second time in four days, a severe down day was followed by a tepid rally. This is hardly bullish inspiration. $SPX sits almost exactly in the middle of the month's lows (1270, roughly) and highs (1360). There should also be support in the 1305-1310 area.
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.
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.
Below is the video of Larry McMillan discussing the "recent strong buy signals in the market" on Tuesday's episode of CNBC's Fast Money.
Larry McMillan was recently interviewed by Wall Street Journal's Wall Street Subscriptions website. Read the interview below:
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.
By Lawrence G. McMillan
At the current time, there are arguably more extreme sentiment readings in the “macro” markets than at any time in recent memory. Macro markets, as defined by economist Robert Shiller in a 1993 paper, are large international markets trading in the form of futures contracts. In a more modern sense, these may also be trading in the form of ETFs. These would include currencies, stock market indices, and most major futures contracts, such as Crude Oil, Gold, and so forth.
