While the markets have done decently over the last six weeks, my best bet for the next few weeks is an uptick in volatility as we enter a new earnings cycle.
As I mentioned before, mixed signals remain.
Gold is still in that medium term cup and handle with a decent OVI albeit with increasing volatility, while at the same time the indices have continued to impress.
Remember, typically Gold will move inversely to the indices … something has to give … and will give! This suggests the market still hasn’t made up its mind, but I suspect it will do in the next few weeks as we get into earnings.
The outcome of all this is likely to be volatility, but right now many options are being priced cheaply.