Stutter Steps?
You might want to pay attention
In New York this morning for the MacroMinds conference. Great line-up of speakers and a bunch of friends in the room. Should be great.
Today’s word appears to be bifurcation. Dow and small caps pointing higher after being the losers yesterday. SPX and Naz pointing lower as chip stocks are getting smacked after showing relative strength yesterday (down but not as much).
Yesterday’s action was enough to knock a few points off of the VIX Mix. We still saw 13 of 17 components in the green.
The chronology chart also continues to look healthy.
Bottom line is that the market had a sneeze yesterday and it looks like there may be some follow-through today. Just another dip or something more. Dunno. Key vol indicators continue to look favorable for risk assets except on intraday timeframes. Let’s see what it looks like at the close.
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The rotational mechanics are a thing of beauty! My thoughts from this morning:
I'd be more concerned about the Nasdaq being down 1.5% and AVGO down 15% if the Dow wasn't +1.5% at ATHs, the Russell wasn't green, META wasn't +2.5%, GOOGL +2%, NFLX +2%, AMZN +1.5%, MSFT +1.5%, and AAPL +0.5%. And if you think VOLs care, VIX is back below 16, June VX is at new lows, and the rest of the VIX futures are red. This is what happens in a healthy bull market.