The persistant computer program buying continues to push prices upward and create an extremely overbought environment. The market internals are painting a different picture about the continued sustainablitity about this move. Four times in the last 14 trading days, the S&P's have gone up 1% or more, with the volume being lower or only marginally better on the NYSE versus the previous day.
Looking at the volume totals on Tuesday 8/12 shows an even uglier picture. The market breadth was extremely weak with decliners surpassing advancers by more than 2.5 to 1. Meanwhile, the market finished up close to 1%.
As we move into the fall, we think the volatility will increase further, and we continue to believe that the probabilities of further price appreciation from here are extremely limited, and favor remaining short.
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• Dranger Capital Management (DCM) is a Commodity Trading Advisor (CTA) based in Dallas, Texas
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- Dranger Capital Management
- Dallas, Texas, United States
- • The Advisor is a member of the National Futures Association and has been registered with the Commodity Futures Trading Commission since July 10,2007 • DCM is offering qualified clients an opportunity to participate in a separately managed account program which seeks capital appreciation of clients’ assets through trading in the E-mini S & P futures and the US Treasury Bond futures market • DCM employs a variety of strategies using proprietary indicators to invest in the short and medium term opportunities (ranging 1 day to 10 days in general).
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