Trade selection using volatility as the primary criteria. Different trades for different volatility opportunities.

The unusual number of announced M&A deals last week, coming right in the middle of the traditional summer vacation prompted one investment banker to say in a television interview that his "black car indicator" had risen to an all time high for August.

The US Department of Education is in the process of changing the funding rules for these companies by requiring them to demonstrate that they are preparing students for actual jobs that give them the chance to replay the borrowed money. In this sector there are several stocks breaking down below their previous support levels.

From a technical analysis perspective, the most important event occurred last Wednesday when the S&P 500 Index declined and then closed below the lower boundary of the potential rising wedge, thus setting off this bearish pattern.

In addition to the VIX futures premium at 21.12, which is worthy of some new hedging positions, we suggest considering the possibility that a trading range is developing.

After several weeks of "risk on" followed by "risk off" perhaps, it is time to begin looking for the possibility of a developing trading range. In this post, we review the technical condition of the equity market and update our indicators followed by a strategy suggestion considering the development of a trading range.

Trade selection using volatility as the primary criteria. Different trades for different volatility opportunities.

Once again, the pendulum swung back to the "risk on" position despite the uncertainties created by the unresolved macro debate over deficit cutting or more stimulus and coming changes to the financial system from "Fin Reg".

For the expected downside, or to hedge existing long positions, we think an interesting idea is to employ debit bear put spreads and credit call spreads.

Trade selection using volatility as the primary criteria. Different trades for different volatility opportunities.

After a substantial rally that took the index past the overhead resistance at 1040.78 look for a minor trend change indicator for clues that this run could be about over.

From "Risk Off" last week it was "Risk On" once again with an oversold rally taking the S&P 500 Index 5.4% higher. Now traders and investors want to know if the bottom has been made, or should we expect to see lower lows?