Tuesday, April 11, 2017

This Week's Video: Comfortably above the danger zones...

In this week's video I illustrate that, from a technical perspective, the market rests comfortably above key areas that, were they breached, might have us re-thinking our allocation strategies going forward.

Now, as I type the Dow's off 120+, while bonds, gold and the VIX (tracks implied volatility in options contracts) are rallying hard. Of course the headlines suggest that this is due to heightened geopolitical risk from the Korean Peninsula to the desks of French-election odds makers -- and I'm certainly not suggesting otherwise. However, if it weren't missiles and Marine Le Pen, I promise you there'd be other headline explanation(s) for the triple-digit Dow declines that occur time and again during the course of every year (be it a bullish or bearish setup).

My point? Healthy markets rest (consolidate) from time to time -- the operative word being "healthy" -- regardless of the presumed catalyst for the pause. And, for the moment, the data tell us that that's the proper characterization...

Once playing, click the icon in the lower right corner for full screen. Focus should occur after a few seconds; if not, click the wheel to the left of the YouTube icon to adjust:

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