Monday 29 September 2014

11am update - QE fuelled bounce

US equities remain weak, and despite a notable bounce, equity bears can tout that the Thurs' low has been quickly broken, and confirmed via VIX 17s - the highest level since Aug'8. Rest of the day will certainly be.... interesting.


Dow, daily


Summary

*there was $2bn of QE fuel this morning.. a bounce was not unexpected. I'm kinda annoyed though that I didn't exit at the open.. I could have simply re-shorted already some 10pts higher. Oh well.
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For me, the issue now is whether we get stuck in the Dow 16700s..or keep on pushing lower to the Aug' lows. Where we floor in the current down cycle - from Dow 17300s, will likely shape the remainder of the year.
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*I'm resolutely holding short, will reassess near the close. Certainly, if we're in the 1950s, I'll probably close out.. even though the 1945/40 zone seems viable on Tuesday.
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For those in a particularly doomy mood...

Over at Mt Doom...



The first snows of the autumn (at least that I know of) are making things even more contrasting... a true land of Fire and Ice.
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11.41am  This is getting borderline bad for the bears... at the current rate, we'll be positive by 1pm. If so..then its white flag time.