EURUSD Price VOL Approaching Historic Lows
Using standard (20, 2) inputs, last week’s Bollinger Band (BB) print on EURUSD stood at 2.3%, up mildly from the recent low of 2.2% posted in early March. That’s the tightest reading in over 40 years. Not since 1977 when the BB printed…...
BTC Price VOL at an All-Time Low
Below I plot the trailing two month (60 days given weekend trading) price VOL [(max close-min close)/average close] of BTC. Historically, VOL always bottomed b/t 10%-15% whereas the current print of 8.9% is the tightest on record dating back to…...
Chinese-Inspired Red October?
The ratio of gold vs. CNYUSD has coiled up into what appears to be a bullish pattern in the chart below, with numerous bullish RSI deviations even as price has pushed lower over the past 18 months. This means one…...
VIX Aiming for Fourth Consecutive Monthly Gain
Though Apr-18 is yet young, VIX is up 9% month-to-date vs. its Mar-18 close of ~20. An up Apr-18 would be VIX’s fourth consecutive monthly gain. At its current 21.77, the cumulative gain across that period would be +97% vs. the…...
Capitulation Near?
The SPX is now ~300 bps off its all-time high of ~2,400 in early March. The decline so far has been less of a correction, but more along the lines of another pause, similar to the one witnessed in Sep-Oct…...
Contradictions Do Not Exist (Was May-15 Really a “Major” Top?)
“Contradictions do not exist. Whenever you think that you are facing a contradiction, check your premises. You will find that one of them is wrong.” — Ayn Rand, Atlas Shrugged As intensely volatile – and often times scary – as the…
Relative VOL of UK Equity and FX Printing All-Time Highs into BREXIT Vote
Here’s a plot of the ratio b/t UK and US-based equity VOL. It’s printing all-time highs at the moment, well above previous highs. In the past, spikes to similar, yet slightly lower highs, have tended to approximate near-term capitulation lows…...
Massive Break-Out in Trade-Weighted USD vs. SPX Signals Intensification of Global Financial Stress
In the first chart below I show a scatter plot of the weekly returns in the trade-weighted USD (USTWBROA; y-axis) vs. gold (x-axis) dating back 20 years into 1995. The red dot is this week’s data point. Note that this…...
ROC in TED Spreads Now Unbearable to System & Suggests Imminent Global Deflationary Collapse Ex Major CB Intervention Program
TED spreads continue blowing out today, reaching 41 bps! Over the past two weeks they have now climbed ~60%. This two-week RoC is near unprecedented since 2007 save for the following discreet events: Mar-08 Sep-08 May-10 Aug-11 Make note, in…...
TED Spreads Breaking Above 30 Years of Resistance Signals Need for Immediate CB Intervention
In the chart below I plot TED spreads in the top panel (a topic initially visited yesterday), the SPX in the middle panel and gold in the bottom panel, all on a weekly basis. As can be seen in the…...