Yo Pit Crazies,
It is that time of year when I think about Spring and Summer. Winter has less than 2 weeks to run and I start looking at my cove to see when the ice will break. Right now it is a big ice cube but I can see blue water just outside the cove above the low tide line. When I left on the Florida trip, that was a sea of ice and snow.
For all you roomies, I think the ice will float out to sea by the first day of Spring. It will take time but it is inevitable. Let me know in class what you think.
Right now the market does not know what to think. The S&P 500 Trust ETF made a 3 month low.
Then it didn’t.
5 Day SPY Chart
VIX made a 30 day high, then it didn’t. Things were downright ugly this morning as reports on the Strait of Hormuz were a downright mess.
Oil prices were up 35% and they should be if oil supplies are going to drop like that.
Then they didn’t as the US Oil Trust ETF (USO) traded $120 and closed $102. What everything seemed in the A.M. turned around by the P.M.
VIX 30 Day Chart
A takeover of the Strait of Hormuz (SoH)
President Trump declared the SoH US property or something similar midafternoon. Stocks mooned, oil and VIX crashed. I do not know if he is right but the tolerance for Mideast Terrorism just got real expensive for states that sponsor it. If the USA secures the Strait of Hormuz, SPY will go plum nuts higher but it will take a while for VIX to get back to 16.
VIX did make a lower low today and I would like to see another day of it. Maybe The Donald pulled off the W of ages. Stay tuned for tomorrow!
To Your Trading Success,
Andrew