Credit conniptions! Well what a week we have ahead. We are on high alert here. There are so many ‘black swans’, that it is likely to be a now rare ‘white swan’ that is the catalyst for a sell-off. That is just the feel that is in the air. You don’t want to trade what you think will happen, you trade what the method is showing. Take it as it comes.
We have had record low volatility. 3 months straight without -2% and 12 months straight without a -3%. This is not a good record. This is very bad.
Nikkei 225 daily very over extended. Possible reversal.
SVXY daily potential double top.
VXX 4hr coiling for breakout.
VIX 5min strong into close on Friday. This means more put options are being bought in anticipation of downside in stocks..
VTI daily MACD divergence.
See all charts below
Oil daily holding the breakout.
UNG daily bounced off support on weather forecasts and expectations of huge increase in nat gas price.
DAX daily counter trend.
FTSE daily counter trend
ASX daily holding the breakout but very over extended.
TNX daily rally in yields on Friday. See if it follows through. 91% chance of a rate hike in December.
JNK weekly high yield showing signs of trouble. Watch spread between junk and investment grade bonds.
RUT daily small caps are counter trend.
USD Index weekly on resistance. Forex has been dead quiet.