Tuesday, May 30, 2017

Correction Coming? … Problem for the Rally … Market Analysis … Trading ETFs and ETF Ranking

CORRECTION COMING (MarketWatch)
“Billionaire investor Paul Singer has a bleak outlook for Wall Street, and he has built a $5 billion rainy-day fund in preparation for what he describes as “all hell” to break out. …[The] Volatility Index (VIX) otherwise known as Wall Street’s “fear gauge,” finished in single-digit territory for only the 13th time in its history, booking its fifth lowest close ever. That is way below the VIX’s long-term average of 20 and comes after the index—used to bet on market swings a month in the future—closed at 15.59 on May 17, the same day appetite for risk went on hiatus.” Story at…
My cmt:
 
PROBLEM FOR THE RALLY (CNBC)
"Dow theory" is a name given to the simple idea that the Dow Jones Transportation Average ought to "confirm" the strength seen in the Dow Jones Industrial Average. If the Dow components rise to a new high while the Dow transports stagnate, a market dip could be ahead, the theory goes….Currently , [May 12] the transports index is trading well below its March 1st high, while the industrials are close to record levels.” Story at…