UVXY flipped red today while the S&P 500 was still negative 5 or 6 pts, a sure sign that we were not about to break down. No, not yet.
Looking ahead to the 11/20 Bradley turn window to finish up the megaphone. It looks about right. Take a look at the November options open-interest for puts on the SPY; there are huge piles of Novembers outstanding that this market wants to eat up. The options sellers will need the money from these profits soon enough.
A December 26th Bradley turn date suggests an EOY sell-off that gets out of hand. It could even mean impeachment hearings for our fake POTUS. Remember, all we need is for some disgruntled former supporter of this guy to leak old financial-aid papers from Columbia out to the Press, and we may find ourselves in a full-blown Constitutional crisis overnight.
Congrats to the Republicans. It won't make any difference with respect to the long-term credit cycle (Kondratieff waves) and the end of the 20th Century, but it will at least piss off a lot of liberals and the FSA in this country. And that's something worth celebrating.