Mounting Frustration

• Posted by Robert Sinn
• on July 12th, 2012

This morning equities officially gave back the entire EU Summit euphoria rally by falling back below where they closed on June 28th:

 

Even for a euro skeptic like myself the increasing rapidity with which supposedly “good news” from Europe washes away is troubling. These markets continue to frustrate those who seek resolution in an overall macro-market environment in which resolution remains elusive. Trend followers want a trend that they can hop aboard and ride for months, however, the macro situation continues to frustrate their desires.

A great deal has been made of the $VIX still being a teenager, however, the fact is that despite the seemingly bearish equity market environment coupled with an ugly macro backdrop US equities really haven’t gone anywhere over the past couple of months – in fact the current VIX reading of 19.36 is pricing in a slightly wider range than the one in which the S&P 500 has traded since early May. I anticipate more frustration ahead and I continue to believe that doing less will amount to more for the vast majority of market participants.

 

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