Wednesday, 15 March 2017

Onward and upward

US equity indexes closed broadly higher, sp +19pts at 2384. The two leaders- Trans/R2K, settled higher by 1.1% and 1.5% respectively. VIX settled -5.4% at 11.63. Near term outlook offers a fair amount of chop into this Friday's quad-opex. Broadly, the sp'2500s are a valid target for late April/May.




It was a rather bullish day for US equities. Price action was naturally somewhat muted ahead of the Fed, but once the annoucement was made, there was another burst upward. VIX even flash-printed to 10.60, as the uncertainty was lifted.

As for today's rate hike...

Fed chair Yellen in a pretty confident mood

There is little to add from what I've said a thousand times across the last few years. Higher rates ARE bullish, not just for the US equity market... but the broader economy. For the moment, the outlook appears strong all the way into spring 2018.

I realise some of you don't want to hear that kind of talk, but I ain't going to placate you with deflationary/recessionary talk for the sake of keeping you as a reader. I'll keep calling it as I see it... as best I can.

Goodnight from London