As founder and editor of Diamond Slice I’m proud to announce that The Weekly Spectrum is going to be more “focused”. It’s obvious that you can get a weekly outlook anywhere on the net, so the one you’ll find here is about to become a bit, well, edgy. There’s enough “fair and balanced” out there to kill us all of boredom, I believe that we at DS can give you something much better, something much smarter, and something you can actually profit from. So without any further ado, I give you “The Weekly Spectrum” 2.0…

In the week ahead the U.S. equity market, broadly represented by the S&P 500 index, will be looking for direction as the level reaches its 200 day moving average (MA), which had served as firm support before dropping below that level on May 22, 2010 for the first time since mid July 2009. By our analysis, markets are now undergoing a sentiment shift, in turn morphing the 200 day MA into a resistance; twice tested but not yet broken since crossing below on May 22.

There are several positions we had been waiting for and on Friday the limits were hit and trades were placed. We are exceedingly confident about these three trades, and we feel that it’s worth our readers’ time to take a peak at where we’re putting our cash. This “trade flash” will target those three trades.

Elliot Wave International chief market analyst Steve Hochberg applies Elliot Wave market timing theory to the current market dynamics. Indicators of sentiment including the S&P 500 put/call ratio, insider trading, and a crashing CBOE Volatility Index are cited as evidence for an eminent sell-off in riskier assets globally.

Click below to see Steve make his case on CNBC’s Squawk Box…

The VIX is the CBOE (Chicago Board Options Exchange) metric of volatility regarding S&P 500 futures (SPX).Currently, the VIX is trading near it’s lowest levels since 2008, allowing bear traders and bull hedgers an attractive entry point for some risk or insurance in their portfolios.

What is Quad Witching? Generally there’s a great deal of confusion concerning the term “quad witching” and what this day may constitute in financial markets. As a result, we would like to take this Quad Witching Friday, March 19, 2010, and demystify the phenomenon once and for all. “Witching” signifies the expiration of an entire group of
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The Chicago Board Options Exchange Volatility Index, commonly known as the VIX, has secured a spot in the limelight as technical traders and six o'clock news broadcasters have religiously cited the measure throughout the unfolding economic crisis. The index is sometimes referred to as the "fear gauge" as it rises during times of increased market
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