Saturday, January 28, 2017

VDX Updates...01.28.17

The market mood has turned bullish with the break above DOW 20k and with the end of month bullish skew in full force next week the odds are for more gains in this overbought market.
The position of the VIX in the 10s is strong supporting evidence for continued moves up...although history has shown that SOMETHING will happen soon to tip that balance ...as evidenced by the forward looking VIX March values which are projected at over 14.
Trader's Outlook shares the bullish view but looming in the background are doubts as to the true resiliency of the recent rally.
Meanwhile, bonds are starting to look attractive if the slope of the yield curve can be contained.