tsptalk's Market Talk

[JTH]

Tom, within the hourly charts, the upside gap has potential to be a correction from the previous downside gap, with a difference of 1.45 points. I'll kindly remind everyone although most do, not all gaps get filled. We still have a 4.31 unfilled upside gap from July 14th 2009.

View attachment 11032

 

[tsptalk]

Good info! Thanks

 

[JTH]

Good info! Thanks

Lol as much gap reading as I've done (I've done a fair amount) I still consider myself a novice. Do you remember that Gap blog I used to read all the time? I lost the link on the last computer crash

 

[tsptalk]

Was it this guy?...

http://www.thegapguy.com/

 

[poolman]

Was it this guy?...

http://www.thegapguy.com/

Very good Info and Video and it is so true.

 

[JTH]

Was it this guy?...

http://www.thegapguy.com/

Sorry that's not it, maybe lady has it or I posted a link over at ETF talk, I'll check this weekend.

 

[law87]

market future looks up tonight

 

[RealMoneyIssues]

Curious, why are stocks and bonds tracking together? I thought they were supposed to be inverse investments...

 

[Birchtree]

The markets are trying to keep you confused.

 

[jpcavin]

The markets are trying to keep you confused.

That's not hard to do. :laugh: That's ok RMI, we're both in the same boat.

 

[tsptalk]

Curious, why are stocks and bonds tracking together? I thought they were supposed to be inverse investments...

As opposed to bond yields and bond prices, which always move inversely to each other, stocks don't always move inversely to bonds.

It is just that bonds are used as a safe haven when stocks are being hit, and when stocks go up, people sell bonds to get into stocks. That's why you see a strong tendency for them to move inversely.

But there are times when they will move together, like if the economy is stalling and the Fed is trying to stimulate the economy by lowering rates. Investors like it and you are likely to see stocks and bonds rally on that kind of news.

I wrote a little about it last week...

http://www.tsptalk.com/comments_archive/comments_5_3_11.html

 

[RealMoneyIssues]

So, other than going with a Bull and a Bear ETF combo, are their other inverse pairs I can use?

 

[tsptalk]

I'm not sure I understand. A bull / bear combo of stocks and bonds ETF's? What are you attempting to do hedge your account or are you looking for one ETF for longs, another for shorts?

 

[tsptalk]

 

[crws]

that sure is some nice lookin lineage you got there.

 

[RealMoneyIssues]

I'm not sure I understand. A bull / bear combo of stocks and bonds ETF's? What are you attempting to do hedge your account or are you looking for one ETF for longs, another for shorts?

Bull / Bear ETF combo (long / short)
Stock / Bond ETF combo (typically go opposite, until recently)

Are there any other opposing pairs of investments that can be used?

Thats probably as clear as mud... :worried:

 

[tsptalk]

How about an example?

Like SSO (2 x long S&P) vs. SDS (2 x short S&P)?

Maybe we should move this to the ETF sub-forum in Investment Portfolios.

 

[Scout333]

Did I understand correctly that the gap has now filled? Low for the day of 1312?

 

[tsptalk]

Yeah, the gap is officially filled!

 

[JTH]

Yeah, the gap is officially filled!

Tom, the gap's not filled yet, there's a .18 point gap yet unfilled