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.


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.


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

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