The collision of global markets and social mood

Friday, August 21, 2015

Friday -- Op-Ex, Danny, Vacation Over

S&P E-mini Futures:
Currently 10 points off the overnight lows.

News:
Back from vacation and into the fire.

First, my internet was down when I got back. I had turned off the modem and the server lost track of it. No technician available until August 24th. No problem -- my awesome neighbor gave me his wireless password. "Don't worry, bro! I got 1 gig down. I can power the whole building!"

It's fast.

My car (due to arrive . . . August 24th) is somewhere between Jacksonville, Florida and San Juan, Puerto Rico -- headed into a strengthening hurricane.

A hurricane that is heading toward me.

Oh, and it's August op-ex.

. . . What Is It About July Op-Ex?

Remember the cocky timestamp from July 20th?


Found this yesterday from a guy who has cried wolf at every major low since 2012 or so.


The S&P could be in a heap of trouble, but it has yet to retrace even 38% of the move from the October 2014 lows.

FX:
Watching strength in JPY, concurrent with equity weakness. Cautionary.

Treasuries:
Yields lower, prices higher, yet charts still look dubious.

Energy:
WTI crude still weak. NG still nowhere'sville since May.

Metals:
Gold has caught a bid over the last several weeks. Silver doesn't look as clever.

S&P Outlook:
Two major swing points were broken yesterday -- 2044.02 & 2039.69.

The Dow and the NY Composite look to have failed.

The Dow broke the equivalent of 1980.90 on the S&P cash.

Bad.

However, VIX term structure may suggest an interim low between now and maybe +/- 5 days.

In other words, I'm not shorting here.

If anything, I'll buy weekly calls to partially hedge UVXY and TVIX.

As for the S&P, it could be making a smaller wave four low in the next few days, or it may have made a larger wave 3 top.



Please note, I have never seen an Elliott wave truncation in real-time, and do not know of any valid ones since the 1982 low. I usually doubt any wave count that suggests one, but based on the way the Dow has broken down, one may have occurred.

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