Market Intelligence

China down, VIX down, FAANG down, Bears down

Author: Aleksandar Adamovic November 8, 2018

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Nikkei continues trading the 21/23k range. The index gapped higher, but there is no real fizz as we approach several moving averages here. More range here it seems. Vol index VNKY down with global volatilities down. Was 30 10 days ago, now 21.

 

 

China- CSI 300 down some, inside the negative trend line. Note it didn´t manage closing above the 50 day.

 

 

China might have a “fundamental” importance, but when it comes to “affecting” the SPX moves in China are not important…SPX vs CSI 300.

 

 

NASDAQ – support at the 200 day 7080 and then the big 7k. Resistance 7300 and then the 100 and 50 day at 7330.

 

 

VIX – down 45% from recent highs…we got the inverted vol panic once again…guess it will be a buy when the same ppl on CNBC that been talking vol up, start  talking vol is expensive “as we don’t move”

 

 

With regards to the Chinese eq markets…as long as ppl don’t start  “speculating” the equity markets will have a hard time going higher…CSI 300 vs China margin trading.

 

 

SPX term structure – total “implosion”. Green 2 weeks ago, blue 2 days ago and orange now.

 

 

So far in Nov the VG1 has moved max 1.75% from lows to highs. 80% of the days the range has been some 15ish points. This is killing ppl long options. 10 day realized vol is at lows since early Oct.

All those German Autos turned on the negative trend as well as moving averages. BMW chart looking at the ugliest, followed by Dai, and even VOW to turn “around” after the squeezy mover.

 

 

Latest AAII reading. Bulls up, Bears down.

 

 

Not overly impressive px action in Chinese Internet ETF, KWEB US, note it has traded in tandem with the FAANGs lately.

 

Source: charts by Bloomberg

 

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