Notes From the Rabbit Hole

Market Snapshot

So where are we after a couple of days of inconvenient activity for bulls? S&P 500 is only testing its SMA 50 as it has on 4 previous occasions this year alone. The Dow, which took in all that rotating money last week is still nowhere near its MA 50.

The leader, Nasdaq 100, which has taken in much rotating hot money over the last few months is also stabbing the 50.

The leader’s leader, the Semi index has tanked the SMA 50, but it was straddling it already before today’s chokeslam. The items above made higher highs before dropping to what are still higher lows. SOX’s current higher low is taking place after a lower high to the June mini blow off. I don’t like that.

And finally, the star of our show, the VIX. A subscriber ran by me his thoughts on buying call options on the VIX to hedge. I thought it was as good a time as any. I think he bought but I did not. I have a few short positions but nothing that came near putting on VIX’s 44% today. Sheesh.

I am actually just sort of floating around mostly in cash, with some precious metals and some longs, with very minor portfolio shrinkage overall over the last few weeks. I stopped making overall gains a while ago, before the Dow and SPX got hit. That seemed to be a message to me.

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