Sandy Tan: Last time someone in this kind of group told me the markets love war.
David Yen: Market react for 911 , after 2 month of 911 , what happen in market ?
Raymond Chapman: War causes a push in one direction or another. But the uncertainty that is going on right now with NK has people nervous. Don’t quit know which way the wind is going to blow. Thats what I’m noticing
Zsolt Nagy-Perge: In order for VIX to go up, the S&P 500 index must go down. In order for the SPX to go down, the individual stocks must go down. And I don’t see that kind of setup right now. I may be wrong, but I just don’t expect a tremendous VIX spike.
Raymond Chapman: Volatility creates opportunity
Raymond Chapman: Har Dee it will be interesting for sure. XIV might be a roller coaster?? not!!!
Raymond Chapman: Har Dee timing is a bitch sometimes with the vix. Especially when you got family raising hell. Lol
Zsolt Nagy-Perge: I see XLV at a resistance. And then if it goes down, it could form an ascending wedge, and break down further. But it’s weird, because I don’t see the same thing on SPY’s chart.
Zsolt Nagy-Perge: Ok. I see it now. XIV price target : 50. I don’t know what that translates to in UVXY. But I’d imagine it will go up at least 100%.
Zsolt Nagy-Perge: The reason for this downward move is not just North Korea, but the Chinese agreed to start trading oil in gold backed Yuan. And that is huge news.
Lam Tai Yuen: Can you tell what is its consequences?
Zsolt Nagy-Perge: It changes everything. The dollar will begin to lose its value gradually. Silver up. Gold up. Copper up. Interest rates up on the 20-yr Treasuries.
Lam Tai Yuen: Zsolt Nagy-Perge what abt oil?
Zsolt Nagy-Perge: Everything you measure in dollars is going to skyrocket eventually. So, yes, that includes oil.
Zsolt Nagy-Perge: This is over the next several decades, I’m not talking about what happens tomorrow.
Matt Axford: I’m thinking we’re going to see a similar move in VIX/UVXY to the one we saw last Monday/Tuesday.
David Yen: I confused. Not sure long or short.
Shah Mundell: Be careful here ppl, the fact that Russell 2000 is rising/diverging vs SPX & NDX – could cause some unpredictable moves.
That implies risk on trades by the banks since IWM is almost entirely owned by them
Zsolt Nagy-Perge: If the market wants to go down really bad, then here is what it would look like on IWM :
Shah Mundell: Could be distribution if it continues tomorrow with only a slight upward move on other indexes.
A lot of volume could hit this week.
Doesn’t help with NK vs US drama….See more
Shah Mundell: The market today could be a real mess if futures across the board stay near where they are. Gold, FX & bonds are mixed too.
No real direction indicated right now. GL, scalpers market right now
Alan Steyman: UVXY and JNUG up
Alan Steyman: Market is down min for two weeks
UVXY and Gold up