First of all, I appreciate everyone’s kind words and encouragement with respect to my writing efforts that I mentioned last night. It actually helped goose me into getting back on track, and it compelled me to read the one and a half chapters I had already written, which actually were pretty good. So……….I’ll try!
I’m glad I don’t make a habit of staying awake all night to watch the futures. Crude oil had an out-of-the-blue plunge and spike whose cause I don’t know, nor do I really care. At this point I’ll assume that the world’s scientists discovered that not only was Omicron quite mild in its symptoms, but it also provides a healthy boost of riboflavin to those infected with the latest style of Covid.
The same spike that drove crude oil apparently found its way to the ES as well, but it was quite temporary. Everything is green this morning, but I suppose I’m supposed to feel grateful that the ES isn’t up another 100 points before the opening bell.
The NQ is the weakest of the bunch (since I suppose P/E ratios of 300 are less appealing than P/E ratios of only 70) and is barely in the positive zone as I’m typing this. These charts, incidentally, are minute bars, and as such as quite short-term.
The small caps do the tidiest job showing the decision that the day has to make. On the one hand, a push above that red horizontal (red arrow) would throw gasoline on the Dead Cat Bounce fire, and I think would push small caps particularly strong. On the other hand, a failure below this small range (green arrow) would start to generate some doubt about if the two day insanity was all they’re going to get.
One thing is not in doubt, however, and that is how the froth and terror that was oh-so-briefly in the markets has been almost wholly eliminated. The VIX, shown below, is just about back down to Thanksgiving levels, when all the post-stuffing fun began. My long-term charts are still cheerfully bearish, so I’m crossing everything I’ve got two of in the desire that Monday and Tuesday were just freak shows.
