Tuesday 6 November 2018

Melt up into the results

US equity indexes closed on a positive note, sp +17pts (0.6%) at 2755. Nasdaq comp' +0.6% at 7375. The two leaders - Trans/R2K, settled +1.0% and +0.5% respectively. VIX settled -0.2% at 19.91. Near term outlook offers a post election washout to the sp'2690/80s, before better opportunity of the 2770/2810 zone.


sp'daily5



VIX'daily3



Summary

It was a day of moderate swings, seeing a low of 2737, but then battling upward into the close, settling at 2755. Volatility was itself subdued, settling just under the key 20 threshold. S/t outlook offers a spike in the VIX, with some equity cooling. More broadly though, the sp'2800s with VIX in the mid teens is due.
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Bonus chart: Germany, monthly


We're only four trading days into the month, but its notable that the DAX is currently +0.3% at 11484. The index/market is m/t bearish, having lost the l/t trend from the 2009 collapse lows. Its very difficult to see the US market breaking new historic highs if German equities don't recover.
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Open day!

Wednesday will be open day at http://subscriber.permabeardoomster.com  
 
For the non-subscribers out there, you will be able to follow my semi-coherent ramblings across the day. It should be interesting, as we'll have the market responding to the midterm election results.
First post: pre-market brief, no later than 8.30am eastern.
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Summer is a faded memory
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Extra charts in AH (usually around 7pm EST) @ https://twitter.com/permabear_uk

Goodnight from London
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