Thursday 8 November 2018

Post FOMC cooling

US equity indexes closed on a weak note, sp -7pts (0.2%) at 2806. The two leaders - Trans/R2K, settled -0.5% and -0.2% respectively. VIX settled +2.2% at 16.72. Near term outlook offers s/t cooling of 2.5-3.5% ahead of next opex. The grander issue remains how November will settle.

sp'daily5



VIX'daily3



Summary

US equities opened a little weak, and saw minor chop into the FOMC announcement. The late afternoon saw a distinct cooling wave, as s/t price momentum now favours the bears.

Volatility saw a new cycle low of 16.09, but then swung upward, settling +2.2% at 16.72. S/t outlook offers equity cooling, with the VIX set to at least test the key 20 threshold.
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Meanwhile... (full screen recommended!)



NASA continues to make reasonable progress with the Orion, as part of the SLS program. However, when you consider that SpaceX are re-using their launch vehicles, it makes the SLS program look grossly outdated. see: https://en.wikipedia.org/wiki/Space_Launch_System

Reading around, I see many within the industry believe that we'll likely only see 3 or 4 SLS vehicles ever launched, not least once the SpaceX BFR is launching on a regular basis.
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Extra charts in AH (usually around 7pm EST) @ https://twitter.com/permabear_uk

Goodnight from London
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