Missing In Action

Seems like most of you guys are MIA today – my guess would be busy Christmas shopping – so let’s make this quick and painless. Equities did a classic ramp & camp but I think both sides still have a shot here. Let’s review where we are on the cash indices:

The Dow spiked to its 25-day SMA this morning and then pulled back. What’s interesting is that this SMA has been almost meaningless in the past few months. But there’s a reason I’m bringing it up anyway.

As you can see so did the Russell 2000 today – again no recent history of caring about it.

SPX – clean touch and drop. Here I’m seeing it being observed most recently. But the combined picture is in sync and thus I am willing to call the 25-day SMA as preliminary resistance.

Rather interestingly the VIX is not playing ball today – apparently that ramp & camp has the potential to turn into a gap fill if buying interest doesn’t materialize in the late session.

Also 3-month volatility as measured by the VXV is apparently dropping against the 1-month – or 1-month IV has risen against 3-month IV. Either way – I don’t like it much and it points toward invitations to the woodshed just as participation is expected to diminish late this week .

Anyway, treat carefully folks – this smells like monkey business – so don’t get over exposed and don’t get married to any direction.

Setups – really good stuff on the FX side today – let’s get to it:

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Cheers,