Volatility dictated the ebbs and flows in Friday trading. The Keybot the Quant algo is long but champing at the bit to go short and identifies VIX 16.85 as the key metric currently impacting stock market prices.
If VIX pops above 16.85, stocks will sell off. If VIX sustains above 16.85, it will be headed for 20 and higher as stocks collapse.
If VIX remains below 16.85, the stock market party will continue for a day or few. Party Town. On Friday as the VIX popped above 16.85, stocks were dropping like rocks. The bulls fought back and in the final minutes, the Fed's jackboot was held on the neck of Uncle Vix making sure the stock market ended happy before the weekend.
King Donnie's tariffs on Mexico, Canada and China will impact stocks on Monday. Canada retaliates but no one is afraid of baby Trudeau, the wannabe tyrant that likes to dress up in blackface on weekends. Mexico is trying to play it cool. The communists are quiet since the Chinese New Year's holiday continues. It is the Year of the Snake for the lying, slithering communists (the 90 million CCP dirtbags; not the 1.4 billion Chinese folks that must live under CCP rule). Prima donna Donnie loves the drama because that gives him an excuse to show his orange head on camera every 10 minutes.
Today is Groundhog Day here in scenic southwestern Pennsylvania; the Laurel Highlands. Punxsutawney Phil, the original and only true animal weather prognosticator, will tell everyone if winter continues for another 6 weeks (he sees his shadow), or, spring is around the corner (he does not see his shadow). There will be plenty of live feeds available on the internet as the time draws near. Phill will come out of his stump home and make his judgement on the weather at about 7 AM EST as the sun rises in these parts. Of course, most people, the non-skiers and non-skaters that sit inside instead of enjoying winter sports, want an early spring and warmer weather, so they are hoping that Punxsy Phil will not see his shadow.
Punxsy Vix will ditch the stock market if he sees 16.85 and higher but the fun times continue in the stock market if he sees 16.85 and lower. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
