Saturday, November 19, 2016

VDX updates and More...11.19.16

The VDX updates confirm the technical overboiught status of SPY and the overtsold status of TLT but, as everyone is aware, we're seeing a strong reaction to the ricing yield curve, strength in the dollar and the high probability that a FED rate hike is coming in December. And, despite the bullish trend of the markets hitting new highs volatility is still a traders game as we witness profound sector rotations.  The emerging markets and the Euro have been particularly hard hit (Euro down 10 days in a row) and the best prospects for the emerging markets (EEM) are on the short side.
See dollar vs Euro (FXE)  and dollar versus EEM charts below.
Finally, the current M11 market momentum signal is shown at the bottom.