US equity indexes closed moderately mixed, sp -6pts @ 2133. The two leaders - Trans/R2K, settled +0.6% and -1.2% respectively. VIX settled +7.9% @ 15.36. Near term outlook still threatens a test of resistance around sp'2160, before broader downside to 2080, where the 200dma will be lurking in early November.
Yet another day of moderate swings. The opening gains to 2147 lasted mere minutes before a rather sharp reversal to sp'2132. Then a typical attempt at a latter day rally, but unravelling into the close, breaking a new intra low of 2131.
The VIX managed a notable third consecutive daily gain. The key 20 threshold looks highly probable by the time of the US election.
The valuation extremes
Just consider this...
*I'll round the numbers, to make the math real simple...
Amazon (AMZN) EPS $2 a year. Stock $760 PE: 380
Ford (F) EPS $1 a year. Stock $11 PE: 11
Interestingly, both have sales/rev' in the $30bns.
We've living in a market way beyond the Twilight zone... far......... far........... beyond.
Goodnight from London