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Tuesday, December 27, 2022

It's time to add another year to the chart view...

 Hope you all had a Merry Christmas, and a Happy New Year is following close behind...

Lately, I've been updating the charts, and adding another year to certain Long Term chart views, ie the  LT Financial Chart below. 

$DJUSFN (Dow Financials) 15 year chart, going back to the crash of 08. 

What I immediately recognize on that chart, is that the pullback of 2022, looks like it's only half way to the target - at the lower end of the channel - and if you've been following along, over the past few weeks, you should recognized this as the Carter Worth chart view, which doesn't line up at all on the $SPX, but seems to line up pretty darn well on the financial chart! 

But what I really want to talk about today is the $VIX. 

What's up with the $VIX? 

We're seeing the $VIX gap up in pre-market again, this morning, but the broader market is also higher. 

We saw the same thing earlier in the month, and I had a hard time reading that anomaly... as it turned out we saw the market sold into Options Expiration, so it appears that the bears won, so I'd have to say that the powers that be, bought puts ahead of a dash for the exits?      

I could hardly believe the $VIX managed to break above the 24 level, on Thursday, was it?  

$VIX pops above the 24 level on 12/22/2022 See Note on Thursdays update (= 13)  

I suppose it could've been that 13 number that spooked the market, or it could be the fact that we're ramping up our proxy war, with a nuclear super power, and congress is even inviting foreign leaders to come to the floor of the Senate.... 

Zelensky Thanks U.S. In Speech To Congress—But Calls For More Aid To Ukraine forbes 

In the coming days, Congress could approve another $44.9 billion in Ukraine-related funding as part of its 2023 fiscal year spending package. 

Follow the Money... 

Getting back to that $VIX chart

The pattern on that ST $VIX chart resembles a bearish H&S 

Looks like we're still on for that Santa Clause Rally I mentioned in the past 2 News Letters, regardless of the war in Ukraine.   

Happy New Year! Cheers! 


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