Loves Labors Lost…

Posted on Apr 19, 2012 by in Letters

Maybe it would be best, Tarantulas labors lost.  The tone of the market is vividly illustrated by today"s price action in the SPX.  A top to bottom range of 20 points, which is enough to leave the casual observer dizzy, but within that  range 6  major waves, one of which reached 6 points itself on the 5 minute chart.  The 6 waves ground up 49 points.  What is going on here?  Well you could describe it as the dance of the tarantulas or as naked mud wrestling.  Whatever it is you don't want to be involved in it.  We remarked a few letters ago that the unusually quiet volatility was about to be shattered by enlarged volatility and that truth -- that volatility tends to revert to the mean -- is amply demonstrated here.  And for all those labors?  Down 8.22 points, -0.59%.

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