In yesterday’s A Failure to Capitulate we chided the market for its failure to make good on the downturn signaled by our numerous bearish charts. For once, the market gods were listening. Futures are off 85 points from recent highs and teasing us with the notion of a — brace yourself — drop below the … continue reading →
Futures have given up all their Tesla gains and are pointing to a slightly lower open for the S&P this morning.Apparently, a threatened breakdown in VIX just isn’t as effective as it used to be. What we have here is a failure to capitulate (apologies to Cool Hand Luke for the cheap rip-off of a … continue reading →
Lots going on this morning, with currencies joining VIX in leading the equity circus. EURUSD smashed its March highs and is closing in on one of two levels of overhead resistance as DXY tests an important channel bottom. The next moves for each will have important implications for the economy and for algo-driven equities. ES … continue reading →
SPX reached our Fibonacci .886 retracement target yesterday. It’s a level I never imagined seeing after stocks reached important support back on March 23. But, then, I never imagined $5 trillion in liquidity – equal to the nation’s Q2 economic output according to the Atlanta Fed – being pumped into the economy in the second … continue reading →
Another day, another VIX plunge in the minutes before the open – and futures, which were off 35 points overnight, are suddenly back in the green. continued for members… … continue reading →
As expected, VIX is leading algos by the nose into another pre-opening ramp job on OPEX. Note the timely drop through the red TL, the yellow TL and, for good measure, the 200-DMA. Meanwhile FAANG member and COVID-19 darling NFLX did reverse at its channel top (the white dot below) as we expected [see: FAANG … continue reading →
Despite approaching OPEX, it’s getting harder and harder for stocks to find a reason to rally. So, last night, they didn’t. On the other hand, a 20-point drop isn’t enough for bears get excited about, let alone pile onto…at least yet. With so many algo inputs suggesting we’re at or near a turning point, what’s … continue reading →
Ultra low interest rates don’t do much for traditional banking earnings, but they’re pretty fantastic for highly leveraged banks such as Goldman that are only too happy to front run the tsunami of Fed liquidity injections. Between GS and more positive vaccine news (Moderna) the futures have pushed to higher highs, settling the question as … continue reading →
Note: CPI came in right on target: +0.6% unadjusted over the last 12 months. The MoM figure also rose 0.6% – driven, as expected, by the 12.3% increase in gasoline prices. * * * The last time I wrote a post including all the FAANG stocks was in November 2018 [see: FAANGs – Now or … continue reading →
I suppose the most stunning news over the weekend was that Disney World has reopened in Florida – where daily new cases just topped the worst that New York ever saw, deaths are also on the rise, and which has the highest percentage (17%) of those over 65. Of the 269,811 confirmed cases, 4,242 (1.6%) … continue reading →