DJIA and SPX back below 200DMA's. VIX is primed to rally.While I...

DJIA and SPX back below 200DMA's. VIX is primed to rally.

While I remain bearish equity indexes, equity markets maybe not about to sh*t the bed. If a santa rally eventuates here (which might be more likely) the $VIX pattern looks more like July/Aug 2001. Weak sideways into Xmas would confirm a sell off into early next year for me. Everyone is comparing to 2008 still ... which looks like a drop is imminent.

A santa 'rally' might just be a weak sideways rally without making new highs. Who knows But this is not a bullish time IMHO. There has been no blood in the streets yet. Rotational devaluation is more likely rather than a sell everything. Bullish plays are out there, but high unicorn ratio equities are likely to sell down still from where I sit. We are not out of the woods.