The Ugliest Faucet
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You're going to see a rush of technical analysts and market watchers pointing to key levels and sentiment indicators, etc. today. In the options space, the implied volatility of CBOE Volatility Index (VIX) options popped up on Friday, put/call indicators are at extremes, and so on. Really, all your favorites deserve a mention. But all those indicators are lagging - not predictive - primarily because equity market sentiment is just a day-late response to what's going on in bond markets.
Several Fed governors - the plumbers - are making speeches this week, and maybe one of them will be deputized to speak in a way that changes the market assessment of Fed policy. Until Treasury notes settle, though - until this liquidity clog is cleared - there's no reason to get worked up about all the second-order effects and chart patterns and so on.
Cash is usually the ugliest faucet: it doesn't do anything, and loses value over time due to inflation. Right now for traders, it's the best of a set of bad alternatives.
Jared can be followed on Twitter at twitter.com/CondorOptions.
OptionsProfits can be followed on Twitter at twitter.com/OptionsProfits.
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