In Cash - February 28, 2012

[Billy]

Strong 20 DMF and weak GDX MF on Monday.

The overall market gap down was heavily bought by large players on increasing volume. Now, will any gap up be sold or bought into? The one-month long consolidation is increasingly mature for breaking one way or the other and large players activity on gaps is one of the best way to witness their conviction.

Both robots are in cash and no edges are present for entering new positions.
Billy

1308513086

[nickola.pazderic]

Billy,

Do you find anything telling in these charts?

13092

13093

Price/EV divergence.

A bearish protection move? An undercover ramp up? Noise?

Many thanks,

[Billy]

Billy,

Do you find anything telling in these charts?

13092

13093

Price/EV divergence.

A bearish protection move? An undercover ramp up? Noise?

Many thanks,

This is meaningless. There is no EV/Price divergence on IWM.
The TNA divergence can be due to time decay of the leveraged derivatives in a choppy consolidation.
Billy

[nickola.pazderic]

That's why I asked.