The twitchy mainstream

US equity indexes closed fractionally mixed, sp -3pts at 2748. The two leaders - Trans/R2K, settled +0.1% and u/c respectively. VIX settled -2.8% at 9.82. Near term outlook offers a little weak chop to around sp'2730. More broadly, things only get interesting within the sp'2950/3047 zone.


sp'daily5

VIX'daily3

Summary

US equities opened moderately weak, with a rather typical recovery into the afternoon. It was notable that the Transports did break a new historic high, a reminder of underlying m/t price momentum. Despite weak equities, the VIX could only push to the upper 10s, and even settled fractionally lower, reflective of underlying capital market confidence. No one seriously expects a sustained/significant equity down wave any time soon.


Twitchy mainstream

Reading around this morning, it was rather bizarre to see how twitchy some were. Did everyone already forget about 2017? Are we really going to have yet another year where the market broadly climbs, but most get borderline upset on every little down wave?

A valid question: How terrified will the masses become when the market does eventually see a multi-week correction of 5%, or... more?
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Bonus chart: Spain, monthly

Even one of the weaker markets - Spain, is offering a bull flag, with another attempt to challenge giant multi-year resistance of 12k.
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A fine January day

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Extra charts in AH (usually around 7pm EST) @ https://twitter.com/permabear_uk

Goodnight from London
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Day six for the equity bulls

US equity indexes closed a little mixed, sp +3pts at 2751. The two leaders - Trans/R2K, settled +0.2% and -0.1% respectively. VIX settled +7.3% at 10.08. Near term outlook offers a little weak chop, but the 2800s are clearly on the menu for February.


sp'daily5

VIX'daily3

Summary

US equities opened just a little higher, but once again, it was enough to generate new historic highs in all six of the main indexes I regularly highlight. Underlying m/t price momentum remains 'scary strong'. The sp'2800s will be technically viable in February.

Market volatility is naturally subdued, with the VIX sustainably printing the 9s. Does anyone seriously think the key 20 threshold is viable before the market at least hits sp'2950/3047 zone?  
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I fully recognise almost none of you care, but this remains very important...

Italy, monthly

The MIB is currently net higher for Jan' by a rather powerful 5.3% at 23004. A monthly close >24k (by late spring) will be profoundly important for the Italian market, but also most other world markets to some degree. Its not just Italy of course, there is Russia, China... the list could go on.

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Extra charts in AH (usually around 7pm EST) @ https://twitter.com/permabear_uk

Goodnight from London
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Meanwhile, at the Seagate crypto desk...

US equity indexes closed on the positive side, sp +4pts at 2747. The two leaders - Trans/R2K, settled +0.8% and +0.1% respectively. VIX settled -1.3% at 9.52. Near term outlook offers a little chop, but the 2800s will be 'technically' on offer in February, with broader key target of 2950/3047 by early summer.


sp'daily5

VIX'daily3

Summary

US equities open a little weak, but the Nasdaq comp' quickly broke a new historic high, and was later followed by the other five main indexes: sp, dow, nyse comp, r2k, and transports. With a sextet of index highs, it was indeed just another day for the equity bulls.

Volatility was naturally subdued, with the VIX stuck in the 9s. Even the low teens look a stretch in the near term. The key 20 threshold looks out of range until we've at least reached the sp'2950/3037 zone.
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Meanwhile, at Seagate

As I was trawling through hundreds of stocks for my pre-market brief this morning, I noticed Seagate (STX) higher by around 15%. After a little digging, I discovered the stock was soaring on the news that it had disclosed it owns 4% of the crypto coin of Ripple.

The infamous Cramer, with some chatter on Seagate.

Whilst most just read the story for what it was, I am left with the following thoughts/questions...

-Someone at Seagate was given permission to start speculating in crypto coins.
-Who authorised this, and why?
-Seriously, what the hell? A drive maker, now has a desk, with an individual/team, buying/selling crypto coins.
-How exactly is this remotely a reasonable use of shareholder/company funds? How many other mid/large cap' companies are also (quietly) running a crypto desk?

-To me, today's disclosure is an ugly red flag for Seagate. Are they struggling that much, they feel desperate enough to start speculating in crypto coins? Or are they just overly confident that they can boost their profits via financial speculation?

-Should we expect sister stock Western Digital (WDC) to also be meddling in such things?

These are crazy times, and indeed, we really shouldn't be surprised at such things, but I guess I am.
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STX, daily

That is one wild black-fail daily candle, and is inherently bearish in the near term. Interestingly, the news just kept on coming in AH...

The company issued a report with raised guidance, sending the stock up another 3% or so. Now I have to ask... is that partly based on expectations for the crypto coin of Ripple?

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Extra charts in AH (usually around 7pm EST) @ https://twitter.com/permabear_uk

Goodnight from London
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