Monthly Archives: April 2013
The chart below is a two minute chart of the SPY on 04-23-2013. The Associated Press’s Twitter account got hacked and someone tweeted that the White House had been bombed. The Dow Jones Industrial Average dropped 145 points and recovered in about 7 minutes. The SPY is shown below, on a two minute chart the down move was over 30 standard deviations as shown on the red bar. This was an excellent example of the kind of market volatility that one tweet can produce, even though it turned out to be false.
The chart below is Netflix, NFLX, stock after their earnings report yesterday. The up move was over 7 standard deviations as shown on the red bars below the price chart. The line on the bottom is the ratio of the implied volatility to the statistical volatility which has dropped to 204.30 post earnings. We discussed NFLX on my radio show, Ken’s Bulls and Bears report with Jeffrey Dow Jones a couple of months ago.
The chart below shows today’s breakout in natural gas. UNG is up over 30% year to date. Today’s price move shown in the red bars is over two standard deviations. The bottom line on the chart is the ratio of the implied volatility to the statistical volatility, IV/SV ratio. I have talked about nat gas on my radio show, Ken’s Bulls and Bears report quite a bit this year and have been recommending it as a long position. $UNG is a part of my ETF covered call model portfolio.