Tuesday, 7 November 2017

A little weak

US equity indexes closed on the weaker side, sp -0.5pts at 2590 (intra high 2597). The two leaders - Trans/R2K, settled lower by -0.6% and -1.2% respectively. VIX settled +5.2% at 9.89. Near term outlook offers moderate weakness to sp'2560, which should equate to VIX 11s (ohh, the drama!).




US equities started the day on a positive note, with a trio of new historic highs in the sp', dow, and nasdaq comp'. There was a soft reversal around 9.50am, and then the market broadly cooled into the late afternoon. There was a closing hour mini ramp, but another wave lower to around 2560 seems very probable within the next day or two.

Market volatility opened fractionally lower, climbed to the 10s, but settling in the mid 9s. We're not going to see the VIX above the key 20 threshold before year end, are we? Indeed, we've not see a year without VIX >20 since 2005, and its reflective of just how confident the US/world capital markets are.

To the APRN and SNAP holders, ohh, and Bill 'no stops' Ackman... the following is for you..


Extra charts in AH (usually around 7pm EST) @ https://twitter.com/permabear_uk

Goodnight from London

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