Market flashing a secret buy sign? Really?

Market Flashing A “Secret” Buy Sign? Really?

Short term traders seem not too sure on what the next move in the market will be.

A recent interview on CNBC highlights the disagreement and “hedging” among traders:

The VIX pattern seems to indicate a wait and see approach by traders. Not much conviction until we see a breakout:

vix

In the meantime the flight for safety continues. As a result US Treasury Bond prices continue to rise:

US bonds

 

The uncertainty due to lower oil prices, a potential Greek default, and continued mix economic data, seems to be keeping many traders on the sidelines.

spx

Keep an eye on the 200 day moving average. There is still a ton of leverage in the US equities market. This is most likely the area where traders will step in –or start removing leverage from their portfolios.

Questions? Thoughts?

 

Feel free to leave a comment below or you can reach out to me privately here.

Thanks,

John Rothe

CEO & Chief Investment Officer

Riverbend Investment Management

 

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