Volatility Indicators Flashing Buy Signals
Fri, Sep 5, 2008 | Jared Woodard
The headline says it all, really. Some of our short-term and more sensitive volatility indicators flashed buy signals premarket today, and futures are well off their worst levels of the morning.
This is obviously not a newsletter trade – just some extra information that those of you who are more active traders may be interested to note.
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In response to some member questions:
- The volatility indicators we’re referencing here are proprietary tools that we’ve developed for identifying short-term trading opportunities. We typically track around 20-30 such studies at any one time, though of course only a subset of those are volatility-based. Some of these metrics are also components of the SQWI, which we update free for members every weekend.
- Our recent systems series gives you some good examples of the kinds of analysis we’re doing. Cf. especially our volatility at the extremes post.
- “Flashing buy signals” means we expect the market to go up – this is a broad-based signal, and any index or index-derivative product would be suitable for trading. Since most of our indicators focus on the S&P 500 and occasionally the Nasdaq 100, ES futures, SPY shares, SPY/SPX options, corresponding NDX/QQQQ products, etc. etc. are all fair game. [However, the recent divergence between the S&P and the Nasdaq should not be overlooked.]
- We failed to indicate a timeframe before! All of our indicators use daily or longer timeframes, so these are most suitable as swing trades.
Also, please use our regular email addresses now (admin@condoroptions.com for inquiries; jared@condoroptions.com if you have a question specifically for Jared) or the contact form on the site; the gmail address we mentioned yesterday is just for emergencies and we don’t check it as frequently. Thanks again for your patience yesterday – for trigger-happy traders, you guys are quite forbearing!

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