Volatility continues to be crushed

With equities soaring for a second day, the VIX was naturally still on the slide, settling lower by a very significant -13.5% @ 16.81. Near term outlook offers continued cooling into year end... and beyond. VIX 11s, or even the 10s appear viable by mid/late January 2015.


VIX'daily3

Summary

Little to add.

VIX is clearly in a new multi-week down cycle. Typically... it will take a few weeks to make a floor, and then another 4-6 weeks of minor chop until the next 'brief spike'.

VIX 20s look off the menu until at least late Jan/early Feb.
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More later... on the indexes

Closing Brief

US equities saw a second consecutive day of powerful gains, sp +48pts @ 2061. The two leaders - Trans/R2K, settled higher by 1.6% and 1.5% respectively. Near term outlook is for continued gains into early 2015... to the sp'2100s.


sp'60min

Summary

*frankly, the closing hour was hillarious... and utter obliteration to those still touting 'its just a bounce'.
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Yesterday was a clear turn... and today offered the bull maniacs the follow through they needed for confirmation.

We're headed higher.. to the sp'2100s. There remains small chance of that before year end, but regardless of when... the 2100s are coming.
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more later... on the VIX

3pm update - a second day of gains

Regardless of the exact daily close, today is day'2 of what will be a very significant up wave into early 2015. Any weekly close above 2042 would make for a clear net weekly gain of around 2%. Oil has fallen significantly, but is holding the recent low. Metals remain highly vulnerable, but for today, Gold +$5.


sp'60min

USO' 15min

Summary

*price action in the Oil is very dynamic, with a fractional higher low... arguably.. a double floor. A daily close back >21 would highly support such a notion.
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So.. a second day of hugely significant equity gains. As ever.. there are little down cycles along way, but... the underlying upside remains very powerful.
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back at the close