Tuesday, 2 February 2016

12pm update - what a car wreck

US equities remain broadly weak, but are naturally battling to claw upward from the morning low of sp'1909 (with VIX 21.99). USD is flat. Gold -$5, with Silver -0.5%. Energy prices remain under severe pressure.. as spring is coming, Nat' gas -6.5%, with WTIC Oil -3.2% in the $30s.



Little to add.

Unlike yesterday, I don't expect the indexes to turn green... certainly not >sp'1947.

Instead, a net daily decline, eventually resuming upward to the 1970s.

notable weakness...

RACE, - Ferrari, daily

First, note the IPO price of $52. The debut daily candle was of the classic black-fail type. The stock is now seeing further weakness on disappointing earnings.. and the outlook ain't so positive.

Due to being a newly listed stock, there are no real technicals to trade by. The only real levels are of the psychological type, $35, 30, 25, 20.. etc.

If the market does get smashed to at least the sp'1700/1600s, then RACE will surely end up in the 25/20 zone.

**Ford and Tesla aren't doing so great either today, both lower by over -4%.

VIX update from Mr T.

time for tea :)