skip to main |
skip to sidebar
Next week is March options expiration for gold and silver on the Comex.
US equities are looking fully valued and entering bubble territory fueled by Benny's handouts to the banks. Thin volumes and short holding times in markets where price is set at the margin by the last transaction is a setup for a flash crash.
Watch VIX and try not to get out in front, but perhaps its time to take out some insurance and bring in some profits.
On the global front, the Arab unrest is spreading amongst the oil dictators and western client state regimes.
Remarkable that, outside of Iceland and Greece, the put upon people of the West seem to be very quiet. In particular the people of Ireland are surprising in their acceptance of a new form of tyranny, not by the gun and the jackboot, but by the pen and the ledger book, and of course the cooperation of local political corruption.
Tomorrow is equity option expiration on the US stock exchanges, and also the last trading day before a three day holiday (President's Day) weekend.
Stocks are quite overvalued, and probably ready for a correction, or at least a consolidation. Any macro exogenous event could trigger a five percent correction.
I hate to keep saying that this is a momentum fueled melt up on light volumes, with Benny's banks leading the charge, but that is exactly what is happening. And they seem to be getting increasingly edgy about handing this off to mom and pop and the institutions.
However until VIX turns, which could be happening soon, I would not step out in front of this. But as of the last hour of trading I started getting defensive and battening down the hatches.
As for the real economy, nothing will improve until 'the truth is found to be lies,' as the song says.
