The CASP: January 4, 2024

A post-breadth thrust overbought condition meets FED re-hawking, rising rates, and the rising probability Treasury re-hawks via the January 31 QRA. Downgrade tactical outlook to neutral (at best).

Analysis

VOL: The VOL complex could be in the early stages of signaling that equity market weakness lies ahead, but it’s not quite there yet. VVIX in particular has not reacted to this opening year eq…