Tuesday 16 October 2018

Bears getting cooked

US equity indexes closed powerfully higher, sp +59pts (2.1%) at 2809. Nasdaq comp' +2.9% to 7645. The two leaders - Trans/R2K, settled +1.8% and +2.8% respectively. VIX settled -17.3% at 17.62. Near term outlook offers a cooling wave, some sporadic 'spooky news' would help, especially on Thursday.

sp'daily5



VIX'daily3



Summary

US equities opened moderately higher, and relentlessly built gains all the way into the late afternoon. The sp' saw a closing hour high of 2813, which is 113pts (4.2%) above the Thursday low.

With equities powerfully higher, volatility was ground lower for a third day, with the VIX settling in the mid 17s. S/t outlook still offers an equity cooling wave, but its going to take some sporadic spooky news to get anywhere near last weeks low.
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Bonus chart: Germany, monthly


With 11 trading days left of the month, the DAX is currently -3.8% at 11776. This remains a concern.
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Extra charts in AH (usually around 7pm EDT) @ https://twitter.com/permabear_uk

Goodnight from London
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