March to 75!
If not tomorrow, I will claim this award in 2016. After all tomorrow is another day/year.
The Street can rally on nothing, but let's set the fact straight. You'd better check the Factset on S&P 500 earning and 2016 estimate at 30sh. S&P is overvalued or valued for collapse.
They sold off their shares at the peak.
historically VIX is traded at its high price range. there are many reasons behind. one that you should remember is funds are selling in December and high uncertainty in the beginning of a year. 2015 is nothing special as funds are selling, but there are tons of uncertainties to be exploded in January. to say the least 1% of interest rate for 2016 is the low end of estimation. I think 3% is a have-to.
but I did and planned to load all the way till January. SPY is rallying due to correction of oil price as oil stocks is down, which was in calculation already after the Feds announced weeks ago to sell strategic reserve. So, this piece of news can be read in two ways, either positive or negative. Besides, nothing is changed to over supplies. I don't know if things are getting worse in terms of over supplies, plus currencies applied into oil trade itself, which is hardly applied into calculation other than a direction.
nothing new here.
This is not an easy fight. Retailers shouldn't have got into the market. By all means, it is a right battle in terms of correction of high yield market that should have been done years ago.
Having said so, patience will be paid off. Of cause, one needs lots of cash to handle this type of volatility.
as many shares of VIX ETF gets triggered. This is not a call on the reversal of S&P since there is no economic base to stay at this level. Our target is 1200 by Xmas.