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We May See a Very Interesting December

Finally a spike in the VIX and we now have the first look in a while at a short term pullback. It’s early because QQQ remains overbought but IWM has become short-term oversold. With commodity prices moving as they are, we may see a very interesting December!

The Path of Least Resistance Remains Quietly Higher

The market remains overbought in the US and outside of OPEC acting in an unanticipated manner, the path of least resistance remains quietly higher. It’s going to require an out of the ordinary event to change the course that began in mid-October.

The Message is Exactly the Same as Yesterday

The market remains extremely overbought in the US and the message is exactly the same as yesterday; with Central Banks around the world coordinating lower rates, along with the month-end upward bias seen in US stocks, it’s going to require an out of the ordinary event to stop this low volatility climb higher.

Going to Require an Out of the Ordinary Event

Extremely overbought in the US but with Central Banks around the world coordinating lower rates, along with the month-end upward bias seen in US stocks, it’s going to require an out of the ordinary event to stop this low volatility climb higher.

The US is on a Short-Term One Way Move

In what appears to be a coordinated move, this morning’s news of multi-continent quantitative easing is going to take an overbought market and make it even more overbought. The US is on a short-term one way move and it will likely stay like that until a surprise event occurs. Any pullback in the indexes should […]

A Short-Term Pullback is Long Overdue

The averages masked the internal weakness that occurred yesterday and with the market running up over the past month obviously a short term pullback is long overdue. Any pullback in the indexes should be viewed as short-term buying opportunities. Today’s Potential Opportunities on Further Pullbacks: ETFs: QQQ

The Fed has Made a Concentrated Effort to Control Volatility

A number of countries which are in bear markets bounced yesterday and now much of the world, especially the US is short-term overbought. Since the bottom in mid-October, the S&P has risen without any type of pullback. If you overlay the 5 period ma onto SPY you will this fact. It’s now gotten into rare […]

Janet Yellen has Done a Masterful Job of Assuring Investors

The market has now officially gone a month without any meaningful pullback or any signs of being oversold. This is obviously something that rarely occurs but it’s also tied into the fact the Fed (Janet Yellen) has done a masterful job of assuring investors that they would do their best at “managing volatility” through multiple […]

IWM is Actually Slightly Oversold this Morning

With implied volatility quietly rising the past few days, along with the small pullback in the small-cap stocks, IWM is actually slightly oversold this morning. Because ranges are so tight, it’s only takes small movements to make markets short-term oversold and this occurs when shorter-term volatility gets very quiet as it has been the last […]

Long US/Short the World

Two very different markets remain out there; the US vs. the rest of the world. US index prices remain relentless. Most of the rest of the world remains in decline with over 35% of the Country Fund ETFs showing ConnorsRSI readings under 25 coming into the day. Until proven otherwise, you go where the money […]

“Never Short a Dull Market”

And on the 17th consecutive day of the S&P closing above its 5 period moving average the index again closed higher… There is a long standing phrase to “never short a dull market” and we are living through the why’s of this. Until something “exciting” occurs, the path of least resistance remains higher on a […]