VIX soars into the weekend

Equities opened moderately higher, along with a weak VIX (intra low 22.48), but with equities imploding into the weekly close, the VIX soared, settling +8.1% @ 27.01. Across the week, the VIX saw a powerful net gain of 48.3%.


VIX'60min

VIX'daily3

VIX'weekly

Summary

Suffice to add... the second consecutive net weekly gain for the VIX, with the highest close since late September.

The weekly cycle is offering 28/29 for the Monday open. In theory, the 32/33s would be likely if the sp' lost the 1900 threshold.

VIX 40/50s are unlikely in the current down wave, but they do look due in the months ahead, as the sp' looks headed for the 1600s.

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more later... on the indexes

Closing Brief

US equities closed lower for the fourth of five days this week, sp -21pts @ 1922 (intra range 1960/18). The two leaders - Trans/R2K, settled lower by -0.7% and -1.7% respectively. Near term outlook offers serious threat of a Monday gap lower <1900..  but with increasing threat of a short term floor.


sp'60min

Summary

*closing hour action: TRAINWRECK, an absolute classic instance of the 'rats selling into the weekend'.
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.. and that.. dear readers.. is how you start a trading year.

One hell of a week... confirming what we saw for the December/yearly close.

The market is headed broadly lower in the weeks and months ahead.. probably to the sp'1600s or so.

Have a good weekend everyone
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**I hold short, via TVIX-long, across the weekend
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*the usual bits and pieces across the evening to wrap up the week

3pm update - rats selling into the weekend

US equities are seeing renewed weakness, and we're likely to see a classic instance of 'rats selling into the weekend', as there is high threat of a significant gap lower next Monday. Regardless of the exact close, it has been a powerful week for the equity bears, with a net weekly decline of around -5.0%.


sp'60min

sp'weekly1b

Summary

Suffice to say... its been one hell of a busy week.

The last two days of December were rather definitive - as I noted last weekend.

We've now seen FULL clarification of where we're headed in the weeks.. and months ahead.

The default trade is clearly to the short side. I realise some will try to trade the rallies, but to me, that seems overly risky and frankly... difficult.
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*I intend to hold a small TVIX-long position across the weekend, seeking an exit in the sp'1920/00 zone.. along with VIX somewhat higher.. pref' around 28/30.
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updates into the close... if price action gets interesting...


3.09pm... VIX -1% @ 24.75.... the 25s look due....    weekly cycle is offering 27/28 next Monday.. and that should equate to sp'1920/00 zone.


3.14pm.. Its getting real shaky out there..

Watching Steve Grasso on CNBC.... one of the more bearish guests... noting empty air from 1930-1867... and under 1867.. its a long way down (as in 1600/1500s.. I'd imagine).

So.. err.. where is Gartman on a Friday afternoon?


3.19pm.. VIX 25s !   ... with TVIX +4.7%.... :)

3.25pm.. Market looks due to fall into the sp'1920s...    VIX might even break the 26s by the AH close of 4.15pm.


3.30pm.. sp' 1931.... the 1920s are imminent.

VIX showing some upside kick... 25.28..... 26s well within range now.


3.33pm.. The rats ARE selling into the weekend !

What a great end to the week


3.36pm.. sp'1927... as price action is getting increasingly unstable.

This is exactly the style of price action that is necessary for a chance at a giant Monday gap down.

We should know around 3.55pm.. if there is a realistic chance.


3.43pm... VIX pushing for a new intra-week high (25.86).... 26s look imminent.

3.47pm. NEW weekly high for the VIX.... next target remains 28/30 zone on Monday.

3.51pm.. TRAINWRECK closing hour.... not quite apocalypse style... but... the setup for next Monday is bearish... with threat of sub 1900 open.


3.55pm...PRICE ACTION does offer a Monday mini-crash.

The window IS open.

................ back at the close.