We’re past the half-month mark and since the current gyrations aren’t exactly conducive to anything outside of playing the swings I thought it would be a good idea to go over our momentum charts. What I found is rather worrisome on a medium to long term basis, albeit there is grounds for optimism more short term.
In case you wonder, despite new meds I still feel like crap. But then again nobody likes a whiner plus as the saying goes: the show must go on. Alright, the month of July is finally nearing its sweaty end (yes I hate summer) which reminds me that I probably owe you a new market momentum update. And I may as well have called it a VIX update as most of my charts today revolve around our favorite and most misunderstood volatility index.
It has now become clear that we are not just traversing a minor market correction we should expect to blow over quickly and painlessly. With Mexico now added to a growing list of nations facing import tariffs into the United States, a growing sense of economic uncertainty and portfolio risk is beginning to take hold among investors. After a morning stroll through my collection of market momentum (mamo) charts I am unfortunately unable to find much reason for optimism, at least over a short to medium term perspective.
Once again the market gapped down at the open but bearish exultations were short lived as price quickly turned and proceeded to squeeze higher throughout the rest of the session. And unless futures turn on a dime in the next hour or so we are looking at yet another gap lower at the open this morning. Are we having fun yet?