June / July Volume NYSE - Lower Than Prior Years

NYSE UP Volume In Decline

The NYSE Up Volume to Down Volume ratio is one of the indicators that appears to be on the rise. What's interesting to note is that the absolute volume of up volume is in decline. The above chart is a 14d moving average of the Up volume.



The level of down volume is also declining; essentially there is less volume all around. The chart below is the 14d simple moving average of NYSE total volume. You can see that market volume is extremely low at the present time.

Nasdaq New Highs - New Lows - Not Confirming

2 Possible Resolutions to Current H/S Formation

The current H/S formation has been developing for awhile now. If we break the current H/S and start to move lower, I'd look for a retest of the underside of the triangle formation; If we stay below that underside, then I'm expecting a larger selloff

SPX gap downs.

SPX and Gaps :

I looked for all the Gaps down in the SPX between March of 2009 and July of 2009; I then filtered out Gaps that were less than 2points, focusing on those greater than 2pts. I noticed that when SPX gapped down by more than two points, you could short the opening price and hold until the following day close, covering at that point - The odds look attractive that you could make 4+ points on that play

Head and Shoulders Formation on 5m Chart

The pattern could resolve itself in one of two ways; It could be a W bottom, in which case the move would be higher or - it could be a H/S top in which case the move is lower.




It appears that we've got a h/s chart pattern formation forming on the 5m chart.

Toxic Assets For Sale

Pimco's withdrawl from the PPIP gives cause for thought. Essentially, the government is hiring investment banks to sell the crap to unsuspecting investors. This is a bad scene. The government is paying these nine firms to convince investors that this stuff actually has value. They're being paid to market the junk assets - because nobody else can. Be prepared for more green shoot talk after this program is finalized. IB's will start telling everyone how things are getting better - soon and why R/E is sooooooo cheap at current levels.

• Pimco’s withdrawal opens the field to competitors such as New York-based BlackRock, which said it plans to raise $4 billion to $5 billion from investors. The company is eligible for as much as $1.1 billion in government funds, according to Bobbie Collins, a BlackRock spokeswoman.

• The Treasury requires companies to raise at least $500 million from private investors within 12 weeks to participate. Pimco was interested in two parts of PPIP, one buying whole loans and the other managing funds that purchase mortgage-backed securities, Gross said in March. The Treasury delayed the portion of the program targeting whole mortgages last month.