Volatility slips lower into the close

With the indexes managing to claw back to flat by the close, the VIX failed to hold very minor opening gains, and closed -2.3%, to settle @ 13.41 There is still marginal upside momentum, first target remains the lower end of the gap zone of 16-18.


VIX'60min

VIX'daily3

Summary

Another day where the algo-bots were more than capable of melting everything back to flat, fuelled by the POMO $...and cheer leaded by the maniacs on clown finance TV.

*I should probably just cut/paste the above, as it will probably suffice for the next few years.

After all, the POMO ain't going to stop any time soon.

Closing Brief

The bulls have fully managed to hold onto their gains from Tuesday. There is absolutely no downside momentum, bears remain utterly...and laughably powerless.


*hourly charts remain bizarrely simple, but then the trend is simply..slow grind up.

sp'60min

Summary

A seriously dull..tiresome, mind numbing day of nothing.
-

With POMO set to continue for months, if not many years...this sort of day is something that will be the norm.

Get used to it.
--

12pm update - morning dip...POMO FTW

Early morning minor declines turn back to fractional gains as the POMO money floods into market land. It remains a strange phenomena that most still refuse to respect. Just what part of 'endless QE' is hard to understand? Is it the 'end'..or the 'less' part?


sp'daily5

vix'daily3

Summary

Same old nonsense. No power on the bear side....

POMO $ coming in..algo-bots melting it upward, all being cheered on by the maniacs on clown finance TV.

Bernanke is to be saluted for his continued successful actions which are absolutely propping up this market.

Have a great lunch Benny!
--

SLV, 60min   Both Silver and Gold are both within a day or two of snapping.

The only issue is which direction! I'm guessing lower, to around $29.

10am update - minor declines

Good morning. Minor opening declines, but really, this remains a laughable situation for the bulls. With the primary trends powerfully pushing higher, there remains no power on the bearish side. VIX is a touch higher, but the move of 2% is mere 'noise'.


sp'daily5

vix'daily3

Summary

I'm not expecting much of today. After all, why would anything happen today? There is no news...not much of anything.

In fact, today is just another prime algo-bot opportunity for recovery melt higher into the afternoon.

Bored already?

Primary trend remains UP

With the indexes rebounding back to fully negate Mondays declines, the bigger trends once again have to recognised for what they are saying. With the transports leading the way - since mid-December, the main indexes are all battling higher, with absolutely no sign that the trend is ending any time soon.


Transports, monthly, rainbow

Sp'500, monthly, rainbow

Summary

I like the rainbow (Elder Impulse candle style) charts, they are often more clarifying about the trends than standard charts. What is particularly notable is the lack of any red candles. 2012 was remarkable for the lack of any decent multi-month downside, and its been around 18mths since the last red candle of Sept'2011.

It is without question that the Transports IS leading the way, and the sp'500 is following, with the Dow..and Nasdaq also battling to keep up.

With the fed throwing 45bn at the primary (t-bond) dealers each month, there is now a permanent bid under this market. The added issue that the HFT algo-bots are still plugged in, causing the statistical melt-up, is the cherry on the top of this mountainous bullish cake of hysteria.

Goodnight from London

Daily Index Cycle update

After Mondays declines, Tuesday saw an near equal rebound, with the main indexes closing around 1% higher. Fractional new highs were put in on the sp'500 and the Transports. The VIX closed around 6% lower, although it gained 11% yesterday..a marginally interesting discrepancy.


IWM

Sp'daily5

Trans

Summary

So...today was clearly a major let down for the bears, but one of yet more hillarity for those on the 'dip buying' train.

There was indeed the initial likelihood of a minor opening bounce - I had assumed one myself, but I sure didn't think it could claw all of yesterdays gains back. As things are, all hopes of a minor multi-day retracement should again be trashed.

With the sp and transports even breaking to new post-2009 highs, it has to be said...wow, what market!


Now it'll be micro 'double top' talk

The hourly charts offer a small scale double top possibility, but its arguably to be dismissed. The daily, weekly, and monthly trends are ALL powerfully pushing this market higher, and as today again showed..the bears just can't string together more than a day or two of 'moderate' declines.

a little more later