US Futures are trading sideways on Tuesday morning - we're sitting near the ATH's, and showing no signs of letting up. The bears have vanished again at the opportune time for bulls, setting us up for further upside this week off the back of nothing but relentless and persistent fiat debasement by central banks, along with the corporate buy-back ponzi. We're entering Q2 earnings season, and so we'll have ample opportunity to dissect the performance of the broader market, to better understand where the flows ended up over the past quarter, and how market breadth is shaping up at the end of this secular expansionary cycle.
As of 9AM the S&P was trading flat at 4,342.50, the Dow was down -0.6% to 34,655, the Nasdaq was up 0.20% to 14,743.50, and the Russell was up 0.16% to 2,305.70. The Dollar (DXY) slipped back to 92.30, while Gold recaptured an 1,800 handle (1,813.20), sitting up around 1.68% in pre-market trade. WTI rallied around 0.86% to 75.81, and Vix recaptured a 15 handle (15.80), after hitting a low of 14.25 on Friday.
According to ZeroHedge, we've seen 7 consecutive days of new ATH's on the S&P, and considering we're seeing data that is not conducive of maintaining loose monetary policy, the Fed is boxed into a corner. Imo this entire rally since the March 2020 lows has been a complete fraud. If you look at the "rebound" with M1 in mind, we haven't rebounded at all. What has seemingly happened is a secret and aggressive devaluation of fiat across the G20, so the working class is none the wiser. Let's see what happens next...
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* Iam/we are currently long HUV, UVXY
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Vix continues to rise, and is now up over 14% on the day, and back at a 17 handle. We're looking at the weekly time frame here, of course, and focusing on the RSI and long term support levels for an indication of a reverse in the recent downtrend. Perhaps we're seeing it play out as we speak, and we're about to get that major market correction we've been waiting so patiently for. Let's see what happens next...
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Buy the dippers stepped in for a second to bid the majors higher, however, they're being punished here at the top of the afternoon session. Vix is up around 18% at the moment, and we look like we're about to test an 18 handle...
@HHSPN, Imo, it would take weeks potentially to get to 60, if at all. I imagine, we'll see many weekly legs higher with vicious downside retracements, evantually leading to a final spike north of 40. I'm holding Vix for a near term repricing of risk, as I see limited downside in Vix from here, with essentially unlimited upside...
HHSPN
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@Hedge_Of_The_World, got it, going for the kill, the black swan moment. Looks like its taking a breather, I'll try to catch some at lower channel ~15.
Hedge_Of_The_World
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@HHSPN, Ya buddy, it's long overdue. So many caeer traders are saying they've never seen anything like this in their life. The inflows are literally historic. When I was working in Capital Markets Technology in Toronto back in 2014, the banks were spending hundreds of millions on Credit Risk systems, and Market Risk systems. However, I never saw anyone even mention the word liquidity. I guess that's the job of the ponzi makers aka central banks. Let's see how long they can keep up the farce before the entire house comes crashing down to reality...
SpareRoomTrader
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@Hedge_Of_The_World, Thanks for the charts. Thats what i thought. I tried to weigh in alot of factors ( from chip shortage, oil price ridiculous uptrend, S&P continuously making an ATH) and it just doesnt add up. A lot of people will be affected once its realized. Im stacking up on VIX for now, with a stop of buying at 15.