I remain in awe that in this totally propped-up market of ours, any stock can succumb to gravity, but it seems that the business model for Angie’s List (about which I’ve written many times) is so flawed that it just keeps plunging. If this idiotic stock market actually returns to normalcy (e.g. a steady grind lower), I’d expect ANGI to get delisted sooner or later.
I last wrote about the SPX:VIX ratio in my post of October 15th.
As shown on the 20-Year Daily ratio chart below, bulls have pushed the price back up to close out this week at major resistance around the 120.00 level. Failure to hold 120.00 could very well see price re-test the 60.00 level, or lower…watch for panic selling of equities should the 60.00 level be breached and held.
The REAL test for sustained market bullishness will be whether price can reclaim and hold the 150.00 level, which was a milestone level this ratio reached before succumbing to pressures of the 2007/08 financial crisis.
After the explosive eight-day surge in the markets (following the bottom last Wednesday), a whole cache of ultrashort ETF charts looks very interesting on the long side. Below are just a couple of examples, and take note how cleanly resistance has magically changed into support. Next week, particularly Wednesday’s FOMC announcement, will clarify whether these “long” positions (although actually short the market) are as profitable as they might appear.
Here’s today’s swing-trading watch-list:
Long Las Vegas Sands (LVS)