Russell And DAX Suggest New Highs, Vix Suggests Caution

A new overnight high in futures. DAX is above its September 9799.26 high which suggests new all-time highs again at some point. Also, the Russell 2000 has bested its Sept. high as well, and both indices are now aligned in sympathy, which could be an important tell for the broader markets.

The S&P, however, has looked weak for the past several days, and is back to its old tricks of needing overnight ramps to make progress. It seems the markets are waiting for word from the ECB regarding QE. The euro is suddenly trading as if there is more uncertainty surrounding ECB QE, yet its larger down trend leaves little doubt.

I continue to position for a long euro trade, long oil, gold, NG, and a possible change from yen weakness to strength. These are larger scale trades and take more time than simple option swing trades on the S&P.

Even though the S&P acts weak, it is still at highs and has shown little interest in backing off. The 2072.02-2095.06 Fib zone is still valid and expected.

The VIX is giving a buy signal, though. So perhaps once the Fib target is fulfilled there will be a real chance of a stronger and deeper correction.

This weekend I found this book on sale for 50 cents. It's fantastic. Although published in 2010 from interviews conducted from 2007-2009, it sounds as pertinent as ever, and perhaps a little foreshadowing, too. The same crap is going on right here right now, and its much worse.