Thursday 2 November 2017

Another day of chop

US equity indexes closed fractionally mixed, sp +0.5pts at 2579. The two leaders - Trans/R2K, settled -0.1% and +0.2% respectively. VIX settled -2.6% at 9.93. Near term outlook offers moderate chop into the weekend. Broadly, the US market remains scary strong, based on good earnings/econ-data.




US equities opened in minor chop mode, and leaned increasingly weak across the morning. The afternoon saw a moderate recovery, with the sp'500 managing a fractional gain, resulting in a very notable third consecutive black-fail candle. Those are usually indicative of bullish exhaustion.

With sp'2566, volatility saw a morning high of 10.89, but then cooling all the way into the close, settling in the 9s for the first time in a week.


Powell is a surprise. Taylor was the best candidate, but then does it really matter? Various fed research papers have already made it clear, when the next crisis, or even just a 'standard recession' hits, the fed will cut rates and spool up the printers. It really doesn't matter who is the one that leads such as institution.

Extra charts in AH (usually around 7pm EST) @

Goodnight from London

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