Tuesday, August 25, 2009

SnP Update

SnP continues its grind, working up into statistically significant resistance without becoming overbought based on OGD2 indicator*. It has broken through its yearly pivot and 'side-line' money continues to chase this market higher offering support on down days and grinding out short-stops on up days. Trying to fade a move like this is nearly impossible, especially as option premia gets continually drained. Fundamentals don't exist in the New Economic Order - only perceptions and deceptions.

*OGD2 indicator is something I'm working on to determine overbought/oversold conditions which amalgamates the following data: daily range, open vs closing prices, price vs. statistical resistance/support levels, and volatility.