Wednesday, 2 March 2016

10am update - no downside power

It remains the case that the equity bears are largely powerless.. with most indexes opening just a little lower. Net daily gains are clearly viable, and regardless of today, a test of 2K looks inevitable, if not the 2020/40 zone by the FOMC of March 16th.


GLD, daily


re: Gold. Still looks due to retrace to the red zone. There is a clear 10 trading day window... and even though I've a target of GLD 125 (aka Gold $1300)... there seems little reason to get involved right now.

Cyclically, we've already ticked lower... and its indicative of just how powerful the recent rally was.

As for equities, its kinda embaressing that the equity bears can barely muster a moderate retrace lower, after what were super strong Tuesday gains.

VIX is +3%.. but only in the 18s... with 16/15s viable with sp'2K.

Instruments like TVIX/UXVY will surely melt lower across the next two weeks. There is likely no hurry on the next volatility-long trade.

time for some sun... back soon