Last night, all the markets sold off in a steady fashion, but the Midnight Magic has returned, and, whoosh, it just blasted off from there. No, there isn’t news about “even MORE narrow” tariffs. It’s just people falling all over themselves to get back in.
Simultaneously, fear is exiting the market (whereas it was in abundant supply just a couple of weeks back). We seem to be bleeding out a point or two of VIX every 24 hours. We’re at a 17-handle now.
Today will put us in Day Ten of the VIX shrinkage, as anticipated in the post I keep mentioning. The blue arrow is there to suggest the extra amount of diminishment we need to wrap this tiresome task up.
The larger picture remains plain as day. We experienced a historically rapid plunge in prices. The President, as he is wont to do, furiously backpedaled from all his solemn pledges about trillions and trillions of dollars in tariff revenue (I’m guess more like “millions and millions”) which has given the market a reason to rally mightily. Resistance is looming, however. It isn’t necessarily at the horizontal, but I think it’s awfully close.
And keep a side eye on Bitcoin, too, just to monitor the animal spirits. Its fate is one and the same.
