- 6 Major Indices
- 9 Major Sectors
- Index/Volatility Ratio Charts
- 30-Year Bonds
- U.S. $
- Fed Monetary Stimulus Program "Canaries"
Last week I said:
"In summary, we may continue to see volatile intraday/overnight swings with little follow-through on lower volumes, until the "Fiscal Cliff" issue is settled and until the end of the year, as fund managers re-organize their portfolios for the 2012 year-end and Q4. At the moment, equity markets still appear to be hedged in Bonds and the U.S. $ as they trade near major resistance levels...this will likely continue until a convincing and sustained breakout occurs in equities. As well, I continue to watch the Fed monetary stimulus program "canaries" and the 1.3250ish resistance level on the EUR/USD forex pair as possible indicators of equity weakness that may become a cause for concern by bulls...at the moment, they are signalling caution, as I discussed in those two articles this week."
This past week, volatility increased and there was profit-taking in all of the above, with the exception of the U.S. $, Euro, and 30-Year Bonds, as will be shown on the following charts and graphs...there will be no commentary, as they are self-explanatory.
6 Major Indices
9 Major Sectors
Index/Volatility Ratio Charts
Fed Monetary Stimulus Program "Canaries"
In summary, we may continue to see a repeat of last week's increase in volatility, profit-taking in equities, and hedging in the U.S. $ and Bonds, until some sort of resolution of the "Fiscal Cliff" and the Debt Ceiling Limit issues are reached that satisfies the markets. We'll have to wait and see what comes from discussions and any votes held by politicians over the weekend (or beyond).
I intend to publish another article after Monday's close that summarizes the market action for Q4 and for 2012.
Happy New Year and good luck next week!