The Current State Of The Market
- Posted by Frank Zorrilla
- on December 16th, 2014
–These are the facts about the current state of the market. These are not opinions nor I’m I trying to imply what the next move is, the information below should give you an idea of what to maybe expect.
–The SP500 is down 4.96% from its all time high which it reached on 12/5/2014, the average correction since 2009 is 6.7% lasting on average 16.9 days. The average correction this year is 5.3% lasting 16 days, we are at 4.96%.
–The $VIX is now 39% above its 10 day moving average and up 76% this month, up 99% from the 12/5 close with the SP500 down only 4.96%.
–The average $VIX spike since 2013 from the $12 level has been roughly 64% we are at 76% now.
–Telechart’s McClellan oscillator closed under -200, dead cat bounces start from these levels, see chart below.
–The stocks that were holding up well finally got hit today $FB $KORS $UA $Z to name a few. What got hit first, the oil names, they were the ones that closed up today. FIFO, first in first out, (oil names are probably only good for a dead cat bounce).
–The Russell 2000 and the Microcaps are holding up better than the DOW and SP500 since we peaked on 12/5, many view that as a positive, some might say that the smaller names have less overseas exposure (perhaps Russia) so they are holding up better.
A proprietary indicator from Pradeep Bonde has spiked to a level that has led to bounces.
–Even with today’s reversal we had more stocks up from the open than down.
Frank Zorrilla is the founder of Zor Capital LLC a New York based investment management firm. Our goal is superior performance, with preservation of capital as our number one priority. Zor Capital manages separate accounts (both taxable and retirement) for accredited investors and institutions. This structure gives clients access to a hedge fund like strategy while maintaining 100% control of their accounts. Managed Assets
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Frank Zorrilla is the founder and chief investment officer of Zor Capital LLC.He began his Wall Street career 10 days after his 20th birthday when he became a Series 7 licensed stock broker. More »
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