Welcome to the TFC Commodity Trading Forum.
Please feel welcome to join in on these informative ongoing discussions about trading futures and commodities.

The Trading Forum is intended for the open discussion of commodities trading. The management of this Forum does not agree or disagree with the ideas exchanged, and does not exert editorial control over the message posted herein. Read and post at your own risk. The risk of loss in trading or commodities can be substantial. We discourage the use of this Forum to promote trading that is acknowledged to be risky. Please note: many links from the Forum lead to pages on other web sites. We cannot take responsibility for nor endorse the information presented on those sites.

TFC Commodity Trading Forum

Re: SPX/VIX Warning & FXI Warning!!!!!!!

Trades,
This market is so stretched out that it has become a joke. Other than a small hiccup in November,it has been a rocket. There are so many now expecting a pullback - when there is one, I'll bet that it will be a short one as there is so much money waiting to get in and resume the ride up. They missed it the first time - they're not going to miss it a second time.
Other than the 40 pt selloff in November, it's been on a tear over the last 5 months. Way too long!
This chart is interesting for a number of reasons. I don't deny that there is a correlation, but the PBC has raised interest rates 3 times over the past 4 months. This may account for the FXI weakness. The first rate increase was on Oct 19, which coincides with the FXI drop. But, your point is a sound one, as we all know that "China is leading us out of recession". But if China sneezes, we all come down with pneumonia.
Need to pay attention to this index - sooner or later, the SPX will top out and head south. I'm betting sooner.

Thanks for sharing!
Best,
S

Messages In This Thread

Re: SPX/VIX Warning & FXI Warning!!!!!!!