Wednesday 7 May 2014

12pm update - choppy morning

US indexes broke the Monday low of sp'1866..but have put in a very clear spike-floor of 1859. A similar spiky-top is apparent on the VIX of 14.49. The underlying upside pressure is still in this market, and a daily close in the 1880s..whether today or tomorrow..looks probable.


sp'60min


vix'60min


Summary

*hourly MACD cycle is set to go positive into this afternoon, and a break into the 1880s looks very likely.
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Watching Yellen..she sure is an interesting little character. I do believe she is sincere in what she says, although I certainly disagree with most of her policies.

A notable questioner this morning was Bernie Sanders, who highlighted a BBC posting on how the USA is now a political Oligarchy. 
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VIX update from Mr T.



As for the 'crash protection' trade, I find it hard to imagine VIX in the upper 20s..never mind 30+.
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time for tea


12.19pm.. Dow +113pts..and looking especially strong...bull flag on the daily..with support at the 50dma.

Dow 16700/800s viable within days..at which point another tranche of bears will be waving white flags.