Monday 13 October 2014

10am update - the 200 dma is hit

US equities open with some mixed weak chop, with a fractional break of the August low of sp'1904, and the 200dma of 1905. The next few days will be all about building a floor, before a 2-3 week climb to 1970/90. VIX is seeing some minor chop, currently a touch higher.


sp'daily5


Summary

Things look on track.

Mr Market could easily chop around these levels for a few days before the first sustained up wave.

Regardless, the bears had their down cycle.... its effectively done.. at least for a few weeks.
--

Notable weakness, DRYS, -19%.... on news it is cancelling a debt auction...


I would hope it will stay afloat (no pun intended), I have been following the company since 2008, and it'd sad to see that one sink. (yeah.. that one is intended).
-

10.01am... sp'1997... with VIX 22s...

Price action remains chop... we're surely building a floor.

Equity bears getting another opportunity to 'make a run for it', before we climb to at least 1950/60... I'm still guessing 1970/90.

VIX cooling.......... Bears...beware!  


10.37am... sp'1893, although VIX still only in the 22s.

Overall.. this is still flooring building time.

Lets see if we can get a turn around 11am.... regardless, I still see this as a time for equity bears to be closing out.

Notable weakness: airlines, UAL -5.4%.... Ebola concerns? Hmm