How to Tame a Bear

On December 24, the President’s Working Group on Financial Markets met “to discuss coordination efforts to assure normal market operations.”  Most people call the PWG the Plunge Protection Team.  Can you blame them? ES rebounded 10.4% since then, and “all” it took was a carefully constructed 45% collapse in VIX.  As we approach our next … continue reading →

Melting Up

The algo-driven meltup continues, with ES currently showing a 24-pt gain primarily on the back of CL’s bounce off its SMA20 and VIX’s gradual asphyxiation.As ES approaches the neckline of the H&S Pattern it completed and paid off so handsomely, we’re left to wonder whether SPX will ever pay its off. continued for members.… … continue reading →

Happy New Year!

After a week-long ramp job, equities are off roughly 40 points.  Is this the end of the rally, or merely a pause before another leg up in a Happy New Year? When ES is sitting just below important moving average support (the SMA10 at 2470.28) I’m always a little circumspect.continued for members… … continue reading →

More of the Same

If you enjoyed Wednesday, you really enjoyed yesterday’s algo-driven meltup too. VIX, USDJPY and CL engineered a striking recovery and reversal.  ES put in a low which should help define a rising channel, then rallied strongly into the close. The recovery was driven by VIX, which suddenly collapsed down through the red TL and SMA5 … continue reading →