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:
In the meantime the flight for safety continues. As a result US Treasury Bond prices continue to rise:
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.
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.
Feel free to leave a comment below or you can reach out to me privately here.
CEO & Chief Investment Officer