MBO Issue 5 (Apr 2012) Euro Forced Upside Breakout

By Lawrence
  • Euro Outlook Changed
  • S&P Pullback Within Expectation
  • GLD Holding Pattern


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  • skippy April 22, 2012 at 4:54 pm

    LC, that 10/4 – 11/25 green support trendline on the SPX…if you draw the corresponding trendline on SPY, you’ll see it’s holding as of last week’s price action. Now, I know SPY includes dividend distributions whereas SPX does not. Given this, do you find such trendlines drawn on SPY to be useful? Or is the apparent tidiness of this particular trendline on SPY merely a coincidence? Thanks…

    • Lawrence Chan April 23, 2012 at 7:49 pm

      It is simply a function of these correlated mkts.

      SPX is in fact tradable thru the derivatives like its options, the index futures, and the ETFs like SPY.

      So, all the participants who trade any one of the these instruments are affecting the index itself.

      I am aware that the SPY is holding its up trendline, it is additional confirmation that S&P is not in a breakdown formation, just a pullback for now.

  • skippy April 24, 2012 at 7:42 am

    Many thanks

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