Daily Archives: March 1, 2017

Holy Dow!

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Equities are an absolute runaway train at this point. Fear Of Missing Out (FOMO) has clenched the throats of the trading public, and a money-losing Internet company whose principal product is a disappearing-dick-pics app is about to enjoy one of the most sensational IPOs of the decade tomorrow. Here below we see the Dow 30 blowing past 21,000 in another multi-hundred point move:

0301-INDU

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Oral Wrecks

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Well, that sucked out loud. Just when it seemed like the equity bears might have a tiny fighting chance of stringing together two or three good days, blammo, Trump’s speech is a hit and everyone goes ape buying stocks. Quite a sight to behold.

All the same, I’d like to offer up the VIX to illustrate that these periods of doe-eyed giddiness have always, even in this insane market, ended in tears. It’s just a matter of time.

0301-vix

Catch Up or Catch Down?

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It should come as a surprise to no one that I’m getting my ass kicked today, as the market once again roars to records highs, based on the fact that Trump didn’t sound insane last night. Oddly, after his speech, the ES and NQ had pretty much shrugged their shoulders at the whole thing. I guess the lack-of-insanity had to sink in for hours, and now equities around the world are at levels never before seen in human history.

Most vexing to me is what energy is doing, because oil is weak (which is what I want to see, since I have a lot of energy shorts) but energy stocks are VERY strong. Looking at the divergence below, the monster question is – – will oil “catch down” to energy stocks (which have been unusually weak until today), or will energy stocks continue to “catch up” with oil?

0301-XOPUSO