The Bonddad Blog: Important Note On the Markets

Tuesday, September 16, 2008

The SPYs broke below 120.

Anonymous said...: what is the SPY and what does it mean that its dropped below 120?

Thank you.; September 16, 2008 at 10:25 AM
bonddad said...: The SPYs are an ETF that tracks the S&P 500.

120 is an important area of technical price support; September 16, 2008 at 11:10 AM
Anonymous said...: Ok. Thank you for that. Now, what is an ETF?

So, once 120 is more pycological than anything, right? You're saying that once it is broken, panic ensues because there is a lack of monetary support in the market.

If that is right, as I'm looking at the market now, it seems that although 120 has broken, the bottom hasnt dropped out. The spread btween puts and calls is huge.

I appreciate the info. I learn a hell of alot from your blog and your Dkos posts.; September 16, 2008 at 11:27 AM
Anonymous said...: What is an ETF?
I suggest reading Wikipedia. It has an extended discussion.
Tom; September 16, 2008 at 3:20 PM