The bullish train accelerates

US equity indexes closed moderately higher, sp +11pts @ 2349. The two leaders - Trans/R2K, settled higher by 1.2% and 0.5% respectively. VIX settled +11.4% @ 11.97. Near term outlook offers nothing to the bears, as underlying price pressure remains 'scary strong'. Next realistic opportunity of a turn is likely no earlier than first week of March, after the President's SOTU speech.


sp'daily5

VIX'daily3

Summary

It was just another day for the equity bulls, with new historic highs in all six of the main indexes I regularly highlight.

VIX was significantly net higher, but that was almost entirely because front month VIX has rolled from Feb' to March... which is always going to be inherently higher.
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As for the train....

Watching clown finance TV this lunch time, it was particularly amusing to see further talk about how 'higher rates are GOOD'. It never fails to surprise me how the mainstream seem to be oblivious to what they used to say in the recent past.

Remember how last October the talk was about whether the Fed would dare hike at the Dec' FOMC? Of course, the same people never saw a Trump victory, and still seem to have ZERO perspective on the giant breakouts in financials, copper... and a number of other things.

So.. the bullish train continues, and with few willing sellers, underlying price momentum is accelerating. Sure, a 5% retrace is still on the menu this spring, but we're now barely 2% from the 2400s.

Here is a scary thought... the sp'2500s are now roughly 6% away. My end year target of 2683 doesn't seem so crazy now, does it?

Goodnight from London

Even Yellen can't spook equities

US equity indexes closed moderately mixed, sp +9pts at 2337. The two leaders - Trans/R2K, settled -0.3% and +0.3% respectively. VIX settled -3.0% @ 10.74. Near term outlook threatens another moderate wave lower to around 2312, but broadly... the 2340/50s look due by first week of March.


sp'daily5

VIX'daily3

Summary

The market saw some early morning weakness, but once again.. it was nothing of any significance. Yellen spoke about a fair few things, including interest rates and broadly subdued long term economic growth, but it wasn't enough to spook equities.

Indeed, by early afternoon, the US market was already breaking a new set of historic index highs, as whilst there are few buyers.. there are far fewer willing sellers.

Most still fail to see the societal/financial change that has occurred since the election of Trump. Rather than the market focusing on what the fed officials are saying, we're in a new era... one where attention is focused on actual earnings and econ-data. This is a good thing, right?
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I recognise that some of you believe a massive long term high is due to be put in within the near term, but go stare at this for a few minutes...

Brazil, monthly

The implications for the US... and many other world equity markets should be clear by now.

Goodnight from London

Super bullish start to the week

US equity indexes closed broadly higher for a fifth consecutive day, sp +12pts @ 2328. The two leaders - Trans/R2K, settled higher by 0.9% and 0.2% respectively. VIX settled +2.0% at 11.07. Near term outlook threatens some cooling, but the bigger weekly cycles (especially for the R2K) argue for continued upside into early March.


sp'daily5

VIX'daily3

Summary

US equities began the week on what was unquestionably a super bullish note. Five of the six main indexes that I regularly highlight broke new historic highs. The rogue index... Trans, looks set to follow tomorrow... or later in the week.

VIX naturally remains subdued.. as most are now resigned to the 11/10s for at least another week or two.

Those of you who have been paying attention to the R2K, should not be surprised by the ongoing upside.

Goodnight from London