Cliff Diving – Day 17

Image_Cliff DiveNot much happening x/ markets remain weakish.

The big moves came in gold, down over 1 percent, and the VIX continues to move higher.  No panic yet as the Russell continues to outperform.  Concern?  Yes.  Panic?  Not yet.

Apple couldn’t break through its 200-day moving average and is looking weak.  Watch $572.26, last Wednesday’s low.

Dec4_FCM_SPY

What would a real fiscal cliff panic look like?

Stocks down hard;  Russell 2000 down harder;  consumer discretionary down hard;  gold up;  dollar down;  VIX spiking;  and defense stocks in the tank.

Bonds?   Tough to extract a clear signal with the Fed’s financial repression, but, initially,  the cowboys would most likely be in buying on recession fears and increased worries about going over the cliff.

Dec4_FCM

(click here if video, chart, and table are not observable)

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