January 2016

[admin]

We've really been pussyfooting as one cannot take anything for granted in these markets. Any small data deviation can very well trigger another big selloff, which is why we remain overwhelmingly in cash, for the moment. Nibbling only at shorting VIX futures half a year out as that stuff is mean reversing..

Recession talk has been circling the stock market during its rapid decline, but those concerns could be allayed over the next two weeks depending on whether U.S. data improve or corporate earnings perk up. Stocks bounced Thursday in a choppy session, as oil rebounded by more than 4 percent. For Friday, there are a few pieces of economic data — Markit manufacturing PMI at 9:45 a.m. ET and leading indicators and existing home sales, both at 10 a.m. More telling may be earnings reports from global industrial giant General Electric, railroad Kansas City Southern and software giant SAP. Synchrony Financial, Sotheby's, SunTrust, Rockwell Collins, Citizens Financial and Legg Mason also report. Oil could resume its decline Friday, after West Texas Intermediate futures settled higher at $29.53 per barrel Thursday.

The next test for stocks