Tuesday, 7 June 2016

Daily Wrap

US equity indexes closed broadly higher, sp +10pts @ 2109 (intra high 2113). The two leaders - Trans/R2K, settled higher by 0.5% and 1.1% respectively. The VIX settled +1.3% @ 13.65. The situation remains extremely borderline, just like June/July, and Nov/Dec' 2015.




So.. a day for the equity bulls, with the sp' coming within 21pts (1.0%) of the May'2015 high of 2134.

We've been here a fair few times in the last year... and most traders should be having a serious case of deja vu... all over again.

I realise some are arguing for the market to remain range bound, but I'm of the mindset that either a bullish breakout will occur this month... or things are going to unravel again.

For the moment, I'm still leaning on the latter, but if we do break above sp'2134, then its a case no more shorts for the remainder of year, and instead... selective 'value' longs.

I've not forgotten today was June 6'th... marking 72 years since the D-day landings in France.

Ice Cold in Alex (1957).

Many never made it home in the summer of 1944, and it puts the utter nonsense... that is the US equity market into true perspective.

Goodnight from London