TVIX, UVXY - exploding ahead of the FOMC

With the VIX soaring into the weekend, the 2x lev' bullish VIX instruments of TVIX and UXVY saw extremely powerful net weekly gains of 56.3% and 58.4% respectively. Further upside across Mon/Tue' looks probable, before equally severe cooling into year end.


TVIX, daily

UVXY, daily

Summary

*first, an update on the VIX, which saw an extreme net weekly gain of 64.7%.

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As for TVIX/UVXY... the bearish multi-week run comes to an abrupt end.. with massive gains.

With equities breaking below the Nov' low of sp'2019, TVIX and UVXY both broke above their mid Nov' high.. as should be the case.. even with the underlying decay problem.

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Best guess... VIX to climb/hold the mid/upper 20s.. .but then rapidly cooling into quad-opex.. and probably all the way into early 2016.

CNX, FCX - smashed down stocks.. trying to rally

Whilst the broader market closed moderately higher, there was notable strength in a fair number of commodity/energy related stocks. Consol Energy (CNX) and Freeport McMoran (FCX) settled higher by a very significant 10.1% and 5.3% respectively. Near term outlook is bullish into January 2016.


CNX, daily

FCX, daily

Summary

Suffice to add... sig' net daily gains, although the broader trend remains powerfully bearish.
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*It would seem unlikely Oil has seen a key multi-year floor at today's new low of $36.38. The 32/30 zone looks viable in first half of 2016.

If that is the case, most energy/oil stocks will be highly vulnerable to renewed downside, even if the broader market is cruising into sp'2200/300s.
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*no position, not least in the coal miners, a sector that remains under direct attack from the US govt'.

AAPL - falling with the broader market

With the main market closing broadly lower for the third consecutive day, Apple (AAPL) was similarly on the slide, settling -2.2% @ $115.62. Rising support is around $113... so long as that holds.. there remains viable upside to the gap zone of 126/130.


AAPL, daily

AAPL, monthly

Summary

Suffice to add... AAPL remains one of the leading stocks in the market.

If the equity bulls are going to achieve broad upside into spring 2016... AAPL will need to be trading well into the $130s.

Right now the $130s are a clear 13% higher... and look out of range before year end.
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*no position, and consider AAPL one of the last stocks to ever be short.