Monday, November 17, 2014

No Movement

This is about as bullish a price action as you can get after a monster V bottom.  Very little volatility as we grind higher, I still see those that can't believe why we go up every day or don't pullback.  This is not your old fashioned market.  The liquidity is overflowing and you don't get pullbacks in those liquidity driven rallies until you hit the top, wiggle around, and then plunge.  It doesn't feel natural, but these are the new rules of the game.  We will keep going higher and higher until we reach nosebleed territory, and then suck in the dip buyers with a few little 1% dips at the top, and then we go down in earnest.

Amazed to see that the VIX futures is still trading at 14.35 with this little volatility.  We are back to the 0.4% daily range.  It is either balls to the wall volatility, or nothing.  We are in the nothing phase, and it should last till year end.

Treasury market looks deadly, every rally is being sold, had a big gap up in the works due to weak Japan GDP but it was straight downhill from Asian trading hours.  Everyone is looking to lighten up ahead of expected hawkish FOMC minutes.

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