Thursday, 7 January 2016

3pm update - just another down day

US equities remain very significantly lower, with the sp' having broken a new cycle low of 1941, with VIX confirming the increasing market upset, @ 25.57. Gold is holding another fear-bid gain of $15. Oil remains somewhat choppy, but weak, -1.7%.




There is ZERO reason to think 1942 is a key low, any more than 1989, or 1979.

With VIX already in the 25s, next level is the 30 threshold.

Indeed, if sp'1920/00s tomorrow, then VIX could max out in the 31/33 zone.

The Friday close will be critical. There is HIGH risk of a Monday washout of another 125/150pts.

We should have clarity of that issue by 3.55pm tomorrow.

notable weakness...

AAPL -3%
CHK -5%
FCX -11%
TWTR -4.2%... as most momo stocks are also unwanted

strength: GDX, +4.7%.. as the precious metals hold that fear-bid... but it won't last.

3.25pm.... sp -49pts... @ 2041

*I've been suffering from trader paralysis for some days...  however, I am now long VIX.. via TVIX.  Stock.. NOT options.

3.32pm... sp' breaks a new low of 1938... with VIX 25.86.

A move to 1920/00 zone looks a given... that should offer VIX close to 30.

3.41pm.. chop chop.... but clearly.. another day for the equity bears.

Ohh lookie.. Mr Mcclellan

back at the close