etfmsolutions: Energy Traders Take Note.....05.31.16

Tuesday, May 31, 2016

Energy Traders Take Note.....05.31.16

Hey!...last day of the month is supposed to have bullish odds...what gives? Well, technical resistance for one thing and that pesky ole FED rate hike worry for another. A sure sign things were going to get volatile today ....at the open VIX was up 8% and the SPY was up .25%....and as usual the VIX trumps the SPY and the NYAD has crumbled from an opening 1.94 to the current .76 at the noon hour (West coast). VIX is now up 13% and SPY is down .5%. Still an unbalanced skew.
Both the MVP SPY and SH models are long for tomorrow, which means delta neutral for now.
Now this is something that may cause some concerns about the stability of the treasury market.
Bloomberg has this tale of the secret US/Saudi deal 40 years ago that is now coming home to roost.
The fallout could be considerable.
Meanwhile here's the MVP spin on XLE (the SPDR oil sector ETF) which has proven difficult to trade using momentum technicals, but which seems to respond well to the MVP volatility forensics.
Certainty a lot less drawdown risk with only 20% of days vested.

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