Joe Tigay This is two weeks of quick vix. A unique pre market blog about what is key to the market. As a former VIX market maker I have a slightly different view on what’s actually trading than what you will see elsewhere. A headline can not describe the market. More often than not supply and demand does. As usual I’ve got my head on a swivel looking for volatility. For most of 2021 a key source of activity has been the action between banks, tech, and rates.
First the Good
Tech has been on a tear since May. Notice below this is when Yields started to selloff. the Friday/Monday selloff did not crack this index and looks poised to soon make a new all time high. That level is 153.84 and would be a continuation of the rally.
Next on to the BAD, Banks
Banks have been on the struggle bus since May and have lost its 50 day moving average. Whats worse is now that the index has been below the 50 day for a couple months we can see that the Moving average is now trending lower. The path of least resistance in banks is lower. 37.00 is that number to push into neutral and the downside could be 32.24.
The Ugly, 10 year Yield
10 year Yield is already at its 200 day moving average. I’m watching that 200 day level. If it acts as resistance the bottom could fall out of yields.
