Friday 31, December 2021

It’s New Year’s Eve, so I’m not writing much, but I thought I’d share some thoughts.

Weekly Wrap

All the US indices are down, as is the dollar. Oddly, the VIX is down too. In this sense the market has been risk off. Bonds are pretty much flat. The 3M rate is pinned to zero, the 10Y is standing at 1.512%, just a fraction above the 1.49% that it has been tracking lately. The dollar is weakening against CAD and EUR, although not JPY. Crude is up a few cents on the month, but down 2% on the day. Generally, all risk assets seem to be fading, except the dollar. Vol remains very low: 17. I don’t know how it is possible to do technical analysis on a volatily index, but if it were a stock, the $VIX would look distinctly downbeat.

I hope you all had a happy 2021 and that 2022 will be even better for you!