2021-04-28: State of the Market

There has been two changes from last week’s initial ‘State of the Market’ screen:

  • Replacement of the $NYHGH market internal indicator by the Put-Call Ratio indicator.
  • Replacement of the VXX symbol by the VIX. The VXX has been through a reverse split resulting on a 4x price increase, which affects the indicators, moving averages, etc.

We can see in the main 3 top symbols, VTI, SPY and QQQ how the market is holding up while the XBP Efficient Ratio is heading towards lower readings, which could signal an entry opportunity in the days or weeks to come.

The Put-Call Ratio reading, via the XBP Market Internals Put-Call indicator, has slightly turn green below the -0.5 key level. Despite being a bullish signal the reversal occurred in quite a high level, so we need to be cautious and wait for a better time if we are looking for a long term entry in the bullish direction.

VIX returned to the bearish path signaling the slight increase in the overall market value and relatively smooth days with low daily ranges. Those who like to buy the VIX once it reaches a “too low or low enough” value, historically the charts tell us that a level of 15 is a good moment to buy the VIX expecting a market bearish period to sell at higher VIX readings. Today we are at level 17, not that far from that 15 level, this sole reason shall warn us to closely watch any long term bullish position and tight our stops.

Finally, the IWM has turn bullish in both price action and XBP Efficiency Ratio indicator. Still caution is advised, remember those very low VIX readings.

Getting the XBP Indicators

If you are interested in using the XBP indicators, simply send me an email and we will complete the transaction using PayPal. The price of all indicators for a life-time license is of USD 100, just 2 E-mini points.

PayPal link: paypal.me/xbptrading

Why there is no a “Buy” button in the site? Well, because I’m not a company. I’m just a trader. My business is not to sell you an indicator. The $100 is just an appreciation token for all the time that I dedicated to craft the indicators and to write this blog 🙂

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