Good morning, everyone. It feels strange that today is Friday, doesn’t it? I suppose a week cleaved by a major holiday can play with one’s sense of position in time.
Overnight, the /ES slowly burned off, and all three big equity futures are red pre-market by about half a percent. Here’s hoping it actually sticks this time.
I am optimistic that it just might, because the shift in behavior of the /ES in recent weeks has all the markings of a top, as opposed to the steady grind higher we were enduring. Let’s just say a chart like the one below, which is the /ES on a 4-hour basis, is not what bull bases resemble.
The /NQ is similarly situated, and as of this composition, it is challenging its Fib level. Yesterday, the Fib held. Let’s see what today brings us.
I went long a substantial quantity of June GDX puts yesterday, prompted by the precarious positioning of both gold and, shown below, silver. /SI is looking ready for a hard sell.
Perhaps the most engaging graph right now is of the VIX, which has been pulsing like an EKG since late July. We seem to have fully paid the piper, witnessing volatility plunge from the upper 20s to almost the sub-teens, and I’m ready for a fresh ramp-up as we enter 2025 and folks realize what chaos awaits.
As for your Coda update, I was happy to wake up to a wagging tail again this morning. She’s warm, comfortable, peaceful, and grateful for your prayers.
