Last week we noted the combination of waning momentum and the upcoming sequestration chatter was increasing the probability that the overdue market correction was about to begin. Now the increasing volume on the two down days confirms the short-term momentum is downward.
There are several reasons for choosing USO for our downside suggestion including the fairly high 10 day correlation of 78% with S&P 500 Index along with the recent seasonal pattern that has seen crude oil decline from February – early March highs to June lows the last two years.
The Cure for High Grain Prices
A quick look at the names active in the pre-market for Monday, February 25
Unusual Options Activity Review for Friday, February 22, 2013
Most Active Equity Options & Strikes For Friday, February 22, 2012
Implied Volatility Mover and Volume Signals for Friday, February 22, 2013
Bullish Bets On The Rise In Las Vegas Sands Options – Today?s Tickers: LVS, ARUN & PLCE
SPX Weeklys hit record volume on Thursday.
Shares of Beam Inc. (BEAM) are up .21 to 61.63. BEAM is approaching 52-week highs.
Shares of AVG Technologies N.V. (AVG) are up 1.55 to 14.68 today. AVG is approaching 52-week highs.
The CBOE volatility index (VIX) is down .86 today.