Thursday, 29 May 2014

Closing Brief

US equities resumed higher - despite a dire revised GDP reading, sp +10pts @ 1920. The two leaders - Trans/R2K, settled higher by 0.4% and 0.3% respectively. Near term outlook offers minor chance of a retrace to 1902/00, but more likely...1920/25 zone to start June.



Remember all the talk about how sp'1897 was a key high...ohh, then but it became 1902...that would be the top.

...and here we are...still pushing upward. This is of course especially impressive considering the latest key GDP print of -1.0%.

On any basis..the market should have been smacked lower by such a large miss - even below expectations of -0.5%.

Just a year or so ago, the market would have been whacked sharply lower on such bad data..but no..not in this 'new normal'.

* I remain content on the sidelines. I'll be tempted to launch a major index short around the next FOMC of June'18.

more later..on the VIX