So what will send this rally over the cliff?

Quote from Maverick74:

9/28/11 ISEE reading of 53 (this is total ISEE). Within a week we put in "the" swing low after the major 30% correction after the debt downgrade. Never saw those lows again.

3/26/12 ISEE reading of 182. The very next day would mark the swing high before the spoos dropped 150 handles over the next 3 months. That was june 4th. Just 3 days later, we get a low ISEE reading of 60. That was the swing low before we rallied 200 handles over the next 4 months.

9/14/12 ISEE reading of 205. That exact day was the swing high before selling off 130 handles over the next 2 months.

1/17/08 ISEE reading of 60 two days before the swing low of 1260 before a 200 handle rally.

3/10/08 ISEE reading of 56 two days before a 200 handle rally off the swing lows.

Those are some that stick out.
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This is the one that stuck out for me:

3/9/09 ISEE reading of 220. This was the day that SPX closed at 676.53, which was the bottom (measured by SPX closing value) of the past bear market. That reading of 220 was the highest since 12/20/2005 and it was not surpassed again until 12/10/2010.
 
I hope we go down soon. I only shorted a few contracts in the last week of april but am down over 25% on my account.:( I am lucky i didnt go all in, this rally is indeed disgusting.:mad:
 
Quote from Josef K:

This is the one that stuck out for me:

3/9/09 ISEE reading of 220. This was the day that SPX closed at 676.53, which was the bottom (measured by SPX closing value) of the past bear market. That reading of 220 was the highest since 12/20/2005 and it was not surpassed again until 12/10/2010.
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Yeah at market extremes you can get extreme readings on both sides. I can deduct why we most likely had a high reading there at the bottom having lived through that day. When the market was in freefall at that point, it was obvious that bottom was near and at the same time nobody was going to try to catch it. Just being off by one trading day could cost you 100 handles in the spoos. I think as we got near that level, people were bottom picking with calls instead of the underlying. I remember that March vividly. It was a news driven market where every rumor shot the spoos up and down 100 handles on nothing. Exchange margins would going vertical. The only way to play was with call options. That would be my best explanation as to why you saw that reading on that day such as it was. Just one man's opinion.
 
Quote from Maverick74:

Yeah at market extremes you can get extreme readings on both sides. I can deduct why we most likely had a high reading there at the bottom having lived through that day. When the market was in freefall at that point, it was obvious that bottom was near and at the same time nobody was going to try to catch it. Just being off by one trading day could cost you 100 handles in the spoos. I think as we got near that level, people were bottom picking with calls instead of the underlying. I remember that March vividly. It was a news driven market where every rumor shot the spoos up and down 100 handles on nothing. Exchange margins would going vertical. The only way to play was with call options. That would be my best explanation as to why you saw that reading on that day such as it was. Just one man's opinion.
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ISEE on fire today bud
 
It's interesting that the equities readings are very high but the indices and ETF readings are very low.

09:50 Equities: 343, Indices & ETFs: 28
10:10 Equities: 293, Indices & ETFs: 20

EDIT: Come to think of it, this could just be due to hedging.
 
Quote from Josef K:

It's interesting that the equities readings are very high but the indices and ETF readings are very low.

09:50 Equities: 343, Indices & ETFs: 28
10:10 Equities: 293, Indices & ETFs: 20

EDIT: Come to think of it, this could just be due to hedging.
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Yeah the ETF and index only reading is usually below 100 and is predominantly used for hedging. That's why I like to focus on the equity only. A side note, there are now a LOT of people trading weekly options and expiration day options so I can't honestly say how much of that today on the equity only is due to expiration day gambling.
 
20130517_DAX.jpg


Look at that squeeze into the close for the DAX. Brutal.
 
ISEE went out near the lows, pretty bullish sign. Put buyers in full force all day long. Mantra continues to be, get long, buy puts, sit on hands.
 
Quote from Maverick74:

20130517_DAX.jpg


Look at that squeeze into the close for the DAX. Brutal.
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Holy crap that is brutal although anyone short right now deserves to have their money taken
 
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