Friday, 24 July 2015

3pm update - a very bearish end to the week

US equity indexes are set to close the week on a particularly bearish note. There are bearish engulfing candles all over the place, and with the current swing in daily momentum, next week is starting to offer something 'spooky'. As ever.. it is now a case of who wants to hold long across the weekend?




*something I've not highlighted in a few days - not least as i was away, the VIX weekly cycle. Chart'2 shows how I wanted to see the underlying MACD cycle hold above the zero line (grey box)... and with today's gains it has.

A powerful VIX surge looks viable into the late summer.

Certainly, I wish to be regularly long the VIX.

*currently still holding a small VIX block.. but will probably drop in the 15s... and then reassess.

It is turning out to be a somewhat exciting end to the week... stay tuned!

3.03pm... amusing to see the cheerleaders on clown finance TV start to get a little rattled. I'm almost surprised they have started calling for no rate rises this year.

Eyes to the Dow... 17500 is very important.

3.17pm.. micro bounce to sp'2082.. but its not important.. the technical damage has been done on a number of indexes.. but more on that.. at the weekend.

3.35pm.. I remain long VIX... seeking an exit in the gap zone.. 15.30/16.60..   clearly, that is out of range until next Monday. So.. I shall hold across the weekend.

3.43pm.. sp'2077.. with VIX 14.50s... well... that'll do for a bearish end to the week.....   it looks like the market wants to test that 200dma next Mon/Tuesday @ 2065. Back at the close