A Holding Pattern

Stocks remain in a year-end holding pattern, meaning they’re getting plenty of support from algos.  SPX had a shot at its SMA10 yesterday, but seems undecided between its 2.24 extension at 2703.62 and a backtest of its SMA10, currently at 2675.41.  It’s a whopping (sarc) 1% spread which simply won’t make a difference.Things could get … continue reading →

Merry Christmas

  Wishing all our members a peaceful holiday season and a joyous new year!  *  *  * This past year was challenging in many ways.  Despite record highs in the markets, poverty, food insecurity and homelessness have not gone away. About half the world population lives on less than $2.50 per day.  Eighty percent live … continue reading →

VIX: New Lows

VIX’s 200-day moving average just registered a 10-handle for the first time ever, dropping to 10.99 this morning… … in order to keep S&P futures in their recently re-acquired rising purple channel.  We saw another test just yesterday (the yellow arrow.)As we discussed last week [see: The Chartist’s Dilemma] this channel dates back to August … continue reading →

The Chartist’s Dilemma

As a chartist, you know something’s gone haywire when a major, long-term channel breaks down and it results in higher prices.  Yet, as every chartist knows, this phenomenon has been a hallmark of the financial markets for the past several years.The S&P futures (ES) offer a very clear example.  Like all channels, the rising purple … continue reading →