Thursday 5 October 2017

Mainstream omissions

US equity indexes closed broadly higher, sp +14pts at 2552. The two leaders - Trans/R2K, settled -0.1% and +0.3% respectively. VIX settled -4.6% at 9.19. Near term outlook offers zero sign of a turn, but the gap zone of sp'2474/61 remains a basic technical necessity.




It was yet another day for the equity bulls, with a quintet of index historic highs (transports was the exception). The sp' settled higher for the 8th consecutive day, the best run since summer 2013.

The VIX settled at 9.19, which (I believe) is the lowest EVER daily close. That merits some reflection.

A basic omission

The lunchtime show on clown finance TV was naturally hyper-bullish (I can't much blame them) as almost everything was rising. They opened with a focus on the tech ETF of XLK, which is well above the March 2000 bubble high of $54.01.

Yet... the truth is that the components/structure of XLK are massively different since that time. There was no mention of this of course, and yes, that can also be argued when comparing any index/ETF to past decades.

Another day closer to winter
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Goodnight from London
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