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The fiscal cliff looms along with tax selling before year end. The longer politicians let this drag on the more volatile things become. Not that I don't value your insight Trans, but we're in unchartered waters here and it could get ugly. I'm hoping IOC can put something together to give us a nice pop before the end of this month. I know that's aggressive, but why not? Be early for once.
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Lib, this indicator only calls out when the market is really rough on the downside. Last numbers similar to what I am getting now occurred into the May 2012 expiration. That was a nice market bottom area. However, on occasional expirations, the strength ratings will be early and the market will move somewhat lower, not much though usually maybe 5% or so, but if so, it's an exception. What the strength rating is saying precisely here, is that too much hedging has occurred. Looking back historically, I'm convinced that investors hedge market bottom areas quite reliably as a rule. That type behavior has occurred this week, so its a warning that the only thing lacking is a "catalyst" to ignite usually surprising rallies. Regarding IOC, another indicator, OBV, measuring accumulation/distribution, is on the verge of emerging up from the bottom trading range, a bullish change of behavior in its trend.. It also registered a sufficient important decline to indicate IOC is ready to start a strong recovery move that usually lasts 2-4 months. we'll see what happens after the option expiration games end in the next few days.
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Thanks Trans, coincides with my views of a possible rebound next week.
Clearly no Group Think involved.
