The collision of global markets and social mood

Tuesday, September 8, 2015

Tuesday -- More Comm-Cap Stimulus, VIX Vs. UVXY

S&P E-mini Futures:
Up strong but off their best. Overall structure appear to be three waves (corrective).

Here's another reason why the futures rally may be fading:

Marketwatch -- "Stock futures surge on hopes for more stimulus from China."

Watching commie-capitalism slowly implode makes for interesting theater.

Of greater concern should be the Nikkei which broke its August lows last night. This does not bode well for the S&P.

Huge up day in AUD possibly on the back of China's stimulus efforts. CAD down however. GBP as well. USD down slightly but firming.

2s-30s trading heavy. Lower prices look soon to come.

WTI crude is closing in on reversing a sharp overnight decline. NG up but continues its year-long sideways trading range.

Silver outshining gold this morning.

S&P Outlook:
Volatility is one of the biggest disconnects in the market right now, in my opinion. One of these below could be very wrong.

The top chart is the VIX. The bottom chart is a 3X ETF of the VIX, UVXY. It is trading as if VIX is above 55 whereas it recently broke below 25.

While for the time being, 1903.07 may be in jeopardy, especially if 1993.48 holds, it is still possible that a B-wave from the 1867.01 lows could be in play.

Late buyers of VIX ETF products could get nailed should the S&P bounce higher toward either volume shelf at 2000 . . . or the 2050 area.

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