Silver Squeeze In Focus
TACTICALLY BULLISH, MACRO BEARISH - still - as I'm waiting for a macro trigger to interrupt the bullish equity flows.
Thursday pre-market we have jobless claims and Friday pre-market we have non-farm payrolls. It's still early for volatility to stick/trend higher (for more than a trade), so it's likely shallow if a pullback this week occurs.
"Tactically bullish" also means I see no volatility and no selling under the surface or breadth destruction to pivot swing short.
Also, USD JPY is not breaking down. This matters to my rate differential indicators & rate volatility.
VIX is still falling into the 16 area (with overshoot to 14.58) as posted last month when it got rejected at 25.20.
MAY 19TH: "a bigger level for VIX to base and move higher with perhaps more gusto that sticks: 15.50."
Until then, there is also sector rotation keeping markets bid - currently in nuclear, semis and precious metals - so money is still rotating somewhere versus leaving!
And you know my saying:
IN LIEU OF SECTOR ROTATION, THERE WILL BE VOLATILITY
Speaking of sector rotation...