SPX Monitoring Functions: Bought 11/29/23 at 4550.58 = acquire 10.52%; lengthy SPX 10/27/23 at 4117.37.
Achieve Since 12/20/22: 26.8%.
Monitoring Functions GOLD: Lengthy GDX on 10/9/20 at 40.78.
Above is the month-to-month SPX. The underside window is the SPX/VIX ratio. It is common for this ratio to guide the SPX, and proper now the month-to-month SPX/VIX has made a better excessive above the July excessive, in addition to above the January 2023 excessive, suggesting that, in some unspecified time in the future, the SPX will commerce above the July excessive and the January 2023 (famous with thick blue arrows). SPX is simply on the July excessive now, however might fade this week as, seasonality-wise, that is the fourth weakest week of the 12 months. We’re solely on the lookout for a pullback that would setup the subsequent bullish sign. The sample that seems to be forming is a head-and-shoulders backside, the place the pinnacle is the October low and the proper shoulder is forming now. Lets see how the week goes.
We bought our lengthy SPX on shut of 11/29/23 at 4550.58 for a acquire of 10.52%. Lengthy from SPX 10/27/23 at 4117.37.
In the event you bear in mind, we bought out in July close to the excessive (bought on 7/21/23 at 4536.34 SPX), and the explanation we bought our lengthy SPX place was due to the chart above. The center window is the every day VIX/VVIX ratio. It is often a bearish signal for the SPX when this ratio is rising together with the SPX (famous in shaded pink). This ratio has been rising from the primary of December (over every week), suggesting the present rally might stall within the coming days. This indicator give power to the notion that this week, seasonality-wise, is the fourth-weakest week of the 12 months. The following potential pullback might produce a bullish setup.
Tim Ord,
Editor
www.ord-oracle.com. E-book launch “The Secret Science of Worth and Quantity” by Timothy Ord, purchase at www.Amazon.com.
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