What is the Death-Cross?

Earlier this morning on Chart Talk, Dan Deming suggested the market may be looking at a death-cross where the 50 day moving averages cross below the 200 day moving averages. Often times when we see this, the market is lower 6 months after this kind of activity takes place. The S&P500, the Dow, and the Nasdaq could all be looking at a death-cross sometime in the near future.

Dan Deming on Chart Talk

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Can the market start to bottom and move higher when there is so much fear? #EAVOL https://t.co/H3ZzzIviOG

Can the market start to bottom and move higher when there is so much fear? #VIX #EAVOL https://t.co/H3ZzzIviOG — Brian Stutland (@BrianStutland) Sep 15, 2022 Source: @BrianStutland September 15, 2022 at 07:24AM More info Your Website/Page Anchor Text Here

Is the KCJ Foreshadowing a 2008 Repeat?

The CBOE Correlation Index (KCJ) is close to the lowest level we have seen since it was first listed in 2007. The KCJ measures the implied movement of the S&P 500 components options, compared to the implied movement of the S&P 500 index options. Simply put, the higher the number, the more likely all stocks are going to move together. Conversely, a low number will be characterized by sector rotation, and flat markets; one sector moves higher, another moves lower. (Source: Access Hollywood) Correlation, for lack of a better term, is correlated with volatility. Not surprisingly, 30-day S&P 500 historical volatility is near the low level of 6.5%. Currently at 33.5, KCJ is sitting close to rock bottom, lower than where it was in 2007, (but not lower than where Lindsay Lohan was in 2007). So far this year, the market has been able to grind higher, characterized by leadership in FANG(Facebook Apple/Amazon, Netflix, Google) and sector rotation. A...

Options Action: Intel

CNBC's Herb Greenberg has the update on GMCR's conference call, and an options play on Intel, with Brian Stutland , Stutland Equities

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