Monday 9 July 2018

Monday gains

US equity indexes closed broadly higher, sp +24pts (0.9%) at 2784. The two leaders - Trans/R2K, settled +2.0% and +0.6% respectively. VIX settled -5.1% at 12.69. Near term outlook offers a cooling wave, but likely no lower than the sp'2740s, even if the US President tweets some more trade threats.




The week began on a broadly positive note, as mainstream attention is naturally switching toward earnings, which are clearly going to come in broadly superb. VIX was subdued, melting to the mid 12s. S/t outlook does offer the sp'2740s, which would likely equate to a brief spike in the VIX to the 14/15s. More broadly, the outlook is bullish, and we could clearly see new historic highs in the R2K and/or Nasdaq comp' as early as tomorrow.

Bonus chart: Australia, monthly

The AORD has broken a new multi-year high of 6383. Next target has to be the Nov'2007 historic high of 6873, which is another 7.7% higher, and viable within 3-4mths. Some strength in commodities would really help inspire Australian equities.

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

Goodnight from London
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