Zero Emotion- Part 2

This is Volar with a sentiment update. I suggest re-reading Part 1, which will help put this into context, but also show you how this time was not different.

News did not matter, and the “BOYZ” got away with selling 14MM puts with a VIX >30. Until we have confirmation of a bear market, I expect bull-market rules to work. We may go test that low sooner than later, but the bears clearly took too long to capitulate the market- and very little to show IMO.

I ask why are algos so very popular? Well most of them do not listen to news, and all of them are rule based trading systems with no emotion. Humans have emotion- which is utterly useless and counterproductive.

Here is a chart of my custom %upvolume (daily 16 years or so)

Here is a my chart of custom TRIN

Both those charts have the same variable- no up issues. So according to this, and most of my sentiment data, everybody was looking for a correction, and that leaves bears little ammo. So far that looks to be the case- guess we will see if they can fire another shot.

Here is one of my custom MOMO indicators for my put/call ratios. This is simple to build- should take less than 5M in excel, and honestly is one of my better buy indicators.

Also seasonality has not failed us yet either.

And POMO… of course… POMO

The BOYZ know of the Greenspan/Bernanke Put believe it or not…

Lastly my Sentiment Survey Index with bollinger bands.

Guess we will see if the bears can fire another shot at the retrace..

Bottom Line:

The bears make get one more shot, but most of my data would say that all of this is acting 100% normal with my data. Personally, I will wait till more (or any for that matter) of the stars align for a kill shot before I plunge short. The game does not change- JLL.

No bias, no emotion, no news, just coin.

-Volar