We're seeing a moderate volume downdraft this morning after an opening gap up. If a debt ceiling resolution is forthcoming a couple hundred point surge is likely but no one at this point is very hopeful for such an event.
Nevertheless, there will be rumors and leaked reports along the way so we can expect some volatility before the dismal deadline is crossed.
GLD and TLT are the beneficiaries of today's weakness but that scenario could reverse quickly.
The T6 version 3 was sent to all users this weekend. If you didn't receive it send me an email at firstname.lastname@example.org and I'll get it off.
It been interesting to see XLU (utilities) jump into #1 slot for the past three days. XLU is typically seen as a market neutral index and its momentum reflects concern about the continuing viability of the equities.
Keep in mind that this is a bullish portfolio with little risk hedge other than XLU. Going forward we'll look at a bear T6 Lab portfolio so that when you look at both of them side by side it's easier to detect underlying market momentum.
Later today I'll post Lesson #1 for the T6 Lab features.
These lessons will be issued as separate posts with the intent of making them easier to archive and retrieve.