Debt is now at 17 trillion, Fed Balance sheet approaching 4 trillion by year end, 35 year low in labor force participation…ATH in recipients of food stamps, US Macro Data is garbage, CAPEX at 2009 levels, Margin Debt at new highs, GDP less than 3%, Mortgage apps at lows, personal spending and savings rates are still very low, and record layoffs still occurring while corporate profits are at record highs. This is not a recovery, nor will we see one. The worst is yet to come, until then, bid the shit out of the S&P……
S&P Futures (ES) and SPX Cash climbed to new record highs yet again. ES hit a new high of 1740.25 and SPX hit a high of 1745.31. The NASDAQ also exploded higher, now only some 650 points shy of the 2000 Tech Bubble highs, as Google climbs over $1000 for the first time. Remember, this is not a tech bubble (keep repeating that in your heads over and over again). From last Wednesday’s low of 1640 in ES to today’s new high, that’s a 100 handle move. Absolutely ridiculous. 10Y year is at 2.58%, almost touching a high of 2.6%. Gold fell 7 to 1315/oz.
VIX was slammed in the morning, falling another 7%, but then rallied higher, even going green, as the SPX continued to make new highs. Hedging was clearly seen, as we are now in uncharted waters, and especially after climbing 100 handles. VIX Futures also briefly went green, but finished lower. VIX closed above 13 at 13.04 (-3.26%), after touching a session low of 12.34. Heavy volume today in the VIX options, especially in the front month. Premiums are still relatively cheap.
20 Year Chart
VIX TERM STRUCTURE (vixcentral.com)