Saturday, December 3, 2016

VDX Updates and Trader's Outlook....12.03.16

This week's VDX updates reveal that the markets have moved into a consolidation mode with the net implication that the next move may be dramatic...either up or down.  
Note that SPY and VIX are sitting on a neutral ledge while the VDI+ and - are convergent..
Many of the talking heads are in the bullish camp with S&P outlooks at 2400...about 22% up from current levels.  Considering that the S&P is already trading at a 17% premium to 10 year levels, this is quite a bump and it may not be a smooth ride.
Trader's Outlook is net neutral for next week....historically go-go bullish.