Today is the day the market finally realizes that the Fed is way behind the curve and that is a good thing.
One of my key themes (long term readers know), and one of the reasons I started this channel is to warn people about the dangerously unstable markets, and I almost feel that my job is done, as there is no longer a point in stating the obvious.
However before I go into the weekend I want to point out the divergence between VIX and SPX. VIX below 30 at this point is a joke and my model tells me it should be 4-5 points higher (which would mean we break below 3900, maybe towards the end of the session).
Of course you could also say VIX is right and SPX is too low, but I think this is less probable, as I look at STIRs and short term yields. Anyways, we will see how this plays out. Until next week!
One of my key themes (long term readers know), and one of the reasons I started this channel is to warn people about the dangerously unstable markets, and I almost feel that my job is done, as there is no longer a point in stating the obvious.
However before I go into the weekend I want to point out the divergence between VIX and SPX. VIX below 30 at this point is a joke and my model tells me it should be 4-5 points higher (which would mean we break below 3900, maybe towards the end of the session).
Of course you could also say VIX is right and SPX is too low, but I think this is less probable, as I look at STIRs and short term yields. Anyways, we will see how this plays out. Until next week!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.