Internal Investigation
A few ratios to discern the state of the market.
My NASDAQ indicator printed a new X today despite today’s fall. Lower volatility is bullish.
The BXM:SPX ratio is banging against the 10sma again, hopefully it will act as resistance and the spread will turn around (bullish).
The continuing fall in Treasury yields is quite discomforting. Either it is fear or a part of some fund strategy that I have yet to understand.
Some suggest that the VIX:VXV is signaling a sell, but I don’t see that quite yet.
Although oil is falling in dollar terms, it has yet to make a new low in gold. I’m cautiously bullish on oil, but not with much confidence.
Mixed messages all around, but I’m still buying the dips. Risks are still very high, and the potential for government currency intervention makes prediction particularly difficult.