So last week we had mixed data at best, but with that having little relevance to today's markets, it's no surprise we keep pushing higher. Since October Option Expiration we have rallied 8% in the ES and similar amounts in other major indices with no real sign of a let up in the move upwards. The price action pre correction has reared its ugly head again. This is low volume, low volatility and few opportunites.
The VIX which is the fear gauge for the SPX is back at 12 and complacency seems to be the name of the game.
The market has maintained its bid through the constant references to QE from central bankers, and the market loves QE. But the way I see it is QE is like the pill in the film Limitless (good watch if you haven't seen it). The initial effects are great for the Stock Market but the likely after effects is likely to be bad! Only time will tell.
On the Bond front, its been pretty mixed with the Bund consolidating the past few weeks and the 10 Year has been drifting off as Equities go up.
STIRs again have been difficult to trade due to lack of action, with Eurodollar really being the only play right now.
Tomorrow is the UK Quarterly inflation report, so that should provide some much needed volatility in the Short Sterling space, so looking to that for some good trading opportunities.
The VIX which is the fear gauge for the SPX is back at 12 and complacency seems to be the name of the game.
The market has maintained its bid through the constant references to QE from central bankers, and the market loves QE. But the way I see it is QE is like the pill in the film Limitless (good watch if you haven't seen it). The initial effects are great for the Stock Market but the likely after effects is likely to be bad! Only time will tell.
On the Bond front, its been pretty mixed with the Bund consolidating the past few weeks and the 10 Year has been drifting off as Equities go up.
STIRs again have been difficult to trade due to lack of action, with Eurodollar really being the only play right now.
Tomorrow is the UK Quarterly inflation report, so that should provide some much needed volatility in the Short Sterling space, so looking to that for some good trading opportunities.
No comments:
Post a Comment