Thursday, November 16th, 2017

Wall Street outraged at Volcker rule

Under Financial Regulatory reform Volker Rule is being debated in Senate now, banning prop-trading, market dives 300 points These kind of background news enrages Wall Street and they have shown no mercy in trashing our markets down 300 points. You can find lame excuses being put forward on TV but those are not the truths in fact those are lies.


This is not over, SPX  is below 200 day moving average clearly in bear territory unless we close above it. This is  heavy duty Institutional selling sort of mini crash in slow motion.  Best to stay on side lines unless you are a good short and can trade this high VIX at 45. Looks like we are back in 2008 once again aren’t we?

Meanwhile the fundamentals of the economy keep on improving. Earnings from TGT, HD, LOW, WLT all came in great and beat market expectation but the stocks were taken to the woodshed and slaughtered.

Wall Street is outraged at Volcker Rule because its limits prop trading if you are a bank with depository reserves. This has been a thorn in the side of these institutional traders and as angry as they can be is showing up on the charts. $DJI gapped down 200 points at the open. The move was pre-configured and there was little you could have done here. Today being options expiration on indexes it crushed many investors because they had to get out.

Getting back in is not such a bright alternative either unless SPX closes above 200 day moving average and rebounds. My short term McClellan Oscillator  is at -400 reading. everytime this tool is below -300 sharp rallies have taken place.

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