Manic Markets

The market continues to churn in a wide range, but there are some signs of change.

Hedged trading has begun under performing the underlying index, signaling short term bullishness. Volatility is falling, but remains high, so stay cautious.

Tuesdays selling may be a capitulation point considering the ratio of down/up volume.

Up/down volume on Wednesday is in an uptrend, so look for markup and accumulation.

The NAMO has stopped falling, and though it remains below 0, it could turn bullish fast.

TBT has showed impressive strength in the last few days, even during the sell off. This is my favorite long candidate, target ~50.

The weakness in the VIX is encouraging, but one day does not make a trend. I'm still very cautions, and more liable to sell rips than buy dips. Nevertheless, if Treasuries continue to fall, I will begin to get long.

State of the Market

The market continues to rally as the Fed lowers key lending rates.

Rate cuts are having a negative effect on US bonds relative to foreign ones.

Up volume significantly outweighed down volume, continuing the bullish theme.

More stocks are trading above their 50dma on lower volatility.

New highs are becoming more prevalent as this index makes a new X.

The oddest thing about today's action was LOWER treasury yields... What The Fuck?!?

The action in Treasuries is mystifying, but it isn't stopping me from trading gold and silver related stocks. The USD has been getting trashed, and while I expect a few bounces, the writing is on the wall. We're still in high risk territory, and the whipsaws will continue, but I'm buying the dip in the strongest sectors.