Hmm, from the open of
dow -100 to +30, with a closing of -1pt. Again, its pretty dull and
tiresome.
Whilst this nonsense
continues, it seems best to focus on the bigger picture. Moves of
less than 1% are merely noise, not least when the last 3 weeks has
been a super tight trading range.
IWM remains stuck in a
3 week distribution formation. Pretty clear, a break over 84 ...chase
it higher..and break under 81...chase it lower.
VIX is still suggesting
2-3 weeks until the first opportunity for an explosion upwards –
somewhere in the upper 20/low 30s.
The master index
arguably broke out of the baby wedge purely due to being squeezed out
for time reasons.
Some more dynamic
movement..is due.
We have lots of
econ-data to come this week, not least of which might be a Q4 GDP
number likely to be revised somewhat lower.
Near term (within 3-7
trading days) targets:
Bearish: VIX 21/22, SP' 1320, IWM' 79
Bearish: VIX 21/22, SP' 1320, IWM' 79
Bullish: VIX breaking
<16, with SP' 1385, IWM 84+
Moody Posters
I am noticing more
moodiness out there across the various boards. The doomers are
getting increasingly desperate for a major move lower (hell, many of them were shorting at sp'1250 in November) -which increasingly
looks unlikely. Meanwhile the cheerleaders are on an ever more
confident tirade, touting new market highs sometime this year.
Clearly, the very
limited trading range we are now stuck in, is starting to really
frustrate a lot of the posters out there.
Regardless of the crazy
posters, March is this coming Thursday. Spring is coming......its time for
some of those 'Green Shoots' again.