The extended Santa Rally has surprised many. With the light volume melt up, many are rather confused at these levels. Shorts sweating, longs enjoying, but want to exit fast, if this turns lower. Volatility has collapsed, and people now hate anything called theta. HFT still dominating the market.
These are all ingredients for some very interesting action going forward. All indices look rather toppish and some key indices are hitting major resistance levels.
Below are essential charts.
While the Market is awaiting holiday season, there is little point in trading it. Market will probably consolidate during the last days of trading. Time well spent is going through charts, and thinking about the “big picture” for next year. Many have lost a lot of money during the wild swings this year. One thing many tend to forget though, is the fact the US markets are pretty much flat. It has been the Euromezz year, and will continue so. Let’s see if the Euro Zone problems spill over to the US. Meanwhile some long term trend to watch for;
Another dull trading session. Market is reaching some support levels. After the huge run up, after the coordinated save the world, many shorts were closed out, and we got some new “smart” bulls. These bulls, still believing in Santa have had some rather difficult days. Market is reaching some short term support levels here. With Vix falling, irrespective of market moves, there are some opportunities being set up for nice 2012 trades. Short term, the support levels should hold, and we get another risk on session, so Santa delivers this year again. Charts below;
Another extremely dull morning in Europe. Occasionally one needs to check whether the intraday charts are updating. Biggest “news” is that Italian yields are falling and the 10 year yield is trading at 6,31, after people “cheer” Monti’s budget cuts. Now we just need to get the growth going…
Meanwhile investors are practically paying to park their money in Berlin. The Buba bill bid to cover came in at 3,8. People are once again thinking of the return of their money.
Dynamics of trading in this mornings session is lacking both volume and liquidity. Let’s wait for the US open. Meanwhile find some important charts below. We are approaching short term resistance levels, everywhere.
The markets have put on a huge rally lately. With correlations at extremely high levls, pretty much all indices have rallied hard, and now start entering the reisistance levels. With short interest at elevated levels, we won’t be surprised if the markets tops out with a false and volatile break to the upside, in an inverted shake out of shorts, before the leg down resumes. For great reading on volatility, check last week’s post from Artemis Capital Management.
Some charts resemble very much the last nasty sell off in 2008. What many forget, is that actually many indices are rather flat compared to mid August levels. We have been building up dynamics for a big move, that should start occuring soon. Full Chartology below.
With Markets falling hard in today’s session, let’s review some important Index Charts. We wrote of the big sell formation last week. We are now trading on those support levels. Will the market fool everybody again, bounce up, and confuse both bulls and bears?
As HFT are dominating all trading, we might just get that flash crash again. Market is sitting on critical levels, especially the SPX. Below charts with important levels to watch. Make or Break, yet again.
SPX sitting on the Edge….
All charts continue.