More SPY gains called – Now what

S&P 500 fulfilled my swing bullish call yesterday, and never touched the 6,047 stop-loss protecting open gains for clients. Other calls were the intraday ones, with the low 6,050s support holding, greenlighting bullish gains in our channel as well. A series of higher highs and higher lows, within confined intraday volatility, that‘s exatly what I called for weeks ago when talking about tame upcoming Santa Clau rally in light of Presidential elections – with plenty of rotations covered for clients premium.

What‘s though macroeconomically most important, is that the recent series of incoming data, perfectly in line with the positive index of economic surprises called, is strong JOLTs openings and greater actual confidence to quit job (JOLTs quits) and to look for greener pastures elsewere – that‘s the sign of reasonably strong economy, consumer in good shape and spending, and bodes well for corporate profits dead ahead too.

It‘s the same good sign also for upcoming non-farm payrolls (employment change coming soon, tracking smaller companies), earnings and unemployment claims – and ISM services PMI going for 56 again (anything above 55 is strong expansion, and US economy is a services one, not a manufacturing one) would be no stunner, adding to the widening differential vs. rest of the world (ROW), making US stocks more attractive.

Let‘s revisit this VIX chart.

Gold, Silver and Miners

Precious metals are going nowhere, proving my call tempering bullish enthusiasm. More consolidation lies ahead, but I see early, very early signs of silver outperforming here and there. Bulls aren‘t in the driver‘s seat in the days ahead – the dollar will show more signs of life.