Thursday -- Snap, Everywhere Is La-La-Land (Except Connecticut), VIX & ISM

S&P E-mini Futures:
Testing the flat line after falling from yesterday afternoon's high.

Markets:
Asia green, even China. Europe mostly red but for UK.

Moodys cut ratings on six Canadian banks... as Canada's real estate bust gathers pace.

Bitcoin up another 3% into the 1800s. Boing.

Rates higher across most markets today, ex-US.

Mood:
SNAP cratered 21% after its first earnings report. The $2 billion loss was a one-time compensation to the CEO, but the numbers still underwhelmed.

Per the Marketwatch live earnings blog:

Quarter-over-quarter, revenues declined and adjusted EBITDA losses increased

Daily active users increased only 5%, forcing average revenue per user down

Total cost of revenue for the quarter was $163.4 million, greater than total revenue, up from $75.8M in the year-ago quarter

Oh....and the CEO believes everyone will go toward being a camera company, because of Snap's success.

Meanwhile, everywhere is La-La-Land:

Business is booming! The record-setting ELEVEN homes that sold for $100m or more across the globe last year - including LA's Playboy Mansion and an incredible Dallas estate

Well, almost everywhere.

"Connecticut State Capital Prepares For Bankruptcy Amid Collapse In Hedge Fund Revenue."

FX:
Another day of USD strength vs AUD, CAD, EUR & GBP. Warnings meanwhile from CHF and JPY strength.

CAD did not get below 1.36257 on its reversal, so new highs could still materialize.

Treasuries:
Finally showing some grit. Bouncing.

Energy:
WTI crude and NG ripping higher.

Metals:
Green.

S&P Outlook:
As much as I like my weekly and monthly VIX average-true-range charts, here's my new favorite VIX chart, inverted ISM vs VIX, courtesy of Raoul Pal who offers a priceless insight:

Notice the building ISM divergence since 2004 as VIX makes new lows. Someday it's going to pop again.

However, at the current rate, it could still be a while. Maybe 3rd quarter. Maybe 2018.

Still not thinking we've seen the highs yet in the S&P or NDX. But as soon as we do, things could get complicated for bulls.

Still looking for puts then with a tight stop, in case it gets complicated for bears.