Monday 31 December 2012

2pm update - the patient bear

The market is doing all it can to battle back after its 50pt decline from 1448 to 1398. Many charts are all suggesting broadly the same outlook... sp'1422/24..with VIX in the low 19s. That would make for a perfect wave'2 bounce..before 'something' upsets the cart.


sp'60min



vix'daily


Summary

I sure am glad I exited at the open, the VIX is massively lower, and the market looks set for the low 1420s...late today, or Wednesday.

This lunacy is exactly the sort of thing that can understandably drive many traders - not least on the short side, to utter despair.

Given a few days, this will very likely be seen as just another 'stupid bounce'.

Eyes on the bigger charts..weekly/monthly.
--

*some crazy spiky action whilst the President is talking...to sp'1418..then to 1410 within seconds.