Some data-feed issues non-withstanding, a demonstrable rotation to defensive posturing took place last week. With precious metals, dollar & other currencies and bonds outpeforming the SPY over the past 10 days. For intermediate term traders like us, rotation out of equities after a prolonged and steady march higher is a welcome "exhale" that we look upon as a set up for the intermediate to long term market run to continue. But, with VIX demonstrably higher, not only is the caution flag up but strategy selection is different. We'll complete our relative strength analysis and look at bullish or bearish credit spreads as possible directional strategy today (recording to be posted below)
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