Monday, December 12, 2005

Blog of the Week: Trader Mike

Time to Change Low Volatility to High Volatility?
December 11, 2005

Volatility has really dropped off the last few weeks. The QQQQ chart below shows that it's gone exactly nowhere over the last 15 trading sessions. I saw a lot of NR7 bars in my scans today, which is often a sign that we're in for an increase in volatility. And what better time for that than expiration week? Of course the big question is which way do we move. After 3 weeks of sideways action I think the indices could just as easily go either way. But from watching the tape over the last few days it feels like there's pretty good support nearby. So without some kind of catalyst to motivate sellers I think we go higher.

Despite the lackluster action in the indices of late there are some good looking individual stock charts out there. Here are some of the ones that caught my eye as I went through my scans today...



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