Wednesday, March 12, 2014

Utilities XLU Surges...3.12.14

The interesting action today on the VEGA model was the strength in XLU....typically a symptom of underlying bearish market sentiment as money flows into the lower beta issues like XLU. 
On the other hand the financials (XLF) are showing some distribution, a situation that has been recently expected by a number of market gurus and is not bullish.

Otherwise, the VIX/XIV skew continues to mask the market's likely next move and from a calendar standpoint we're mid month, an unusual time for dramatic breakouts/breakdowns absent some provocative news item.