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BofAML Warns "Risk Off" To Continue This Week

Tyler Durden's picture




 

Across asset classes, BofAML warns that financial markets suggest that this week will see a continuation of the risk off theme from last week. The breakout in the VIX says that investor anxiety wiil remain elevated, particularly as the S&P500 remains on track to test 10 month trendline support at 1657. In such an environment, safe havens such as US Treasuries should benefit with a target 2.544%/2.459% resistance.

VIX Breakout

The Friday breakout in the VIX, and completion of a 2wk Head and Shoulders base, says that investors are growing increasingly anxious about the risk off environment of the past week. With the Head and Shoulders base targeting 17.00/17.80, anxiety is set to rise further in the sessions ahead. Look for safe havens to benefit at the expense of risk assets.

S&P500 has further downside in store

All the evidence points to further near term losses for the S&P500. An impulsive decine from the 1729 high, bearish daily and weekly momentum oscillators and now the breakout in the VIX all keep the immediate focus lower. Downisde targets are seen to 10m trendline support at 1657 before renewed basing.

US 10yr Treasury yields target the range lows

With risk assets coming under pressure, we expect the US Treasury market to remain well supported. Looking specifically at 10s, stay bullish for 2.544/%2.459%, with bears needing a break of 2.775%/2.782% to indicate a base and turn higher. 

Via BofAML

 

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Mon, 09/30/2013 - 08:30 | 4005011 29.5 hours
29.5 hours's picture

 

No worry. The next crash is priced in. Buy!

Mon, 09/30/2013 - 08:37 | 4005035 GetZeeGold
GetZeeGold's picture

 

 

Nothing but blue skys...

Mon, 09/30/2013 - 08:38 | 4005038 BigJim
BigJim's picture

OT, I know, but how about signing a petition requesting Bart Chilton resign from the CTFC and become a whistleblower with regards to silver manipulation?

http://www.gopetition.com/petitions/bart-chilton-resign-go-public-on-sil...

Come on Tyler(s), rally the ZH masses!

Mon, 09/30/2013 - 08:35 | 4005023 Sudden Debt
Sudden Debt's picture

I've heard the crash story for over 5 years now.
I'm sorry... this time...
won't happen either...

Let's just hope we can get more gold and silver at cheaper prices. That's all I care for these days.

Mon, 09/30/2013 - 08:34 | 4005027 Dr. Engali
Dr. Engali's picture

So BTFD then. Got it.

Mon, 09/30/2013 - 08:38 | 4005032 fonzannoon
fonzannoon's picture

I will be. You are correct. As lame as ot may sound. You are correct. Ironically I will probably start to short treasuries a bit looking for a risk on celebratory 10-15bp bump in yields as people sell treasuries to buy stawks. 

Mon, 09/30/2013 - 08:47 | 4005071 Dr. Engali
Dr. Engali's picture

I'll be buying too. The fact that people believe a guberment shut down is actually a guberment shut down amazes me. They can't afford to do so for too long, people might discover there is life without Washington.

Mon, 09/30/2013 - 08:55 | 4005104 NoDebt
NoDebt's picture

"people might discover there is life without Washington"

What the...?  How did I end up down here on the floor?  I was reading ZH and then... and then everything went black.

Mon, 09/30/2013 - 09:12 | 4005151 Bearwagon
Bearwagon's picture

Congrats, you just did your first steps into a much bigger world ...

Mon, 09/30/2013 - 08:48 | 4005073 SheepDog-One
SheepDog-One's picture

You guys are buying this shit? I wouldn't touch the rigged casino with 1 stack of Walt White's cash if I found it. 

Mon, 09/30/2013 - 08:56 | 4005095 fonzannoon
fonzannoon's picture

I would need a bank check anyway.

Of course you are right SD-1 but I am just not convinced anything is truly going to change anytime soon.

 

Mon, 09/30/2013 - 08:59 | 4005102 Dr. Engali
Dr. Engali's picture

If the Bernank is going to give me free funny money that I can then turn into real tangible goods, then I am going to take it. If he pulls the rug out from under me, oh well I only keep what I can afford to lose in the system. As for my clients, I tell them to buy some insurance to protect themselves from the rigged market. It's incumbent upon them to take action.

Mon, 09/30/2013 - 09:26 | 4005176 negative rates
negative rates's picture

The old insurance scam, you need cash now? Start a health scam system where the today's healthy, pay for yesterdays sinners, it can be very easily done, just keep making bad promises, and then enforce it with law.

Mon, 09/30/2013 - 10:24 | 4005350 SheepDog-One
SheepDog-One's picture

Well, good luck to you Ponzi dip buyers, frankly I think you're all crazy...but hey go get your 'free money' lol whatever. You can also make lots of money participating in Russian roulette in Vietnam, but I'm not doing that either.

Mon, 09/30/2013 - 10:04 | 4005297 asteroids
asteroids's picture

I'm buying none of it. No volume and tight control. You would expect swings of dollars on down days like today, instead, you get pennies. And all the action happens when the muppets are asleep. Stay away.

Mon, 09/30/2013 - 08:42 | 4005048 Poor Grogman
Poor Grogman's picture

Talk of war
Talk of gun confiscation
Talk of economic recovery
Talk of some nasty terriss doing something somewhere
Talk of the traffic road toll
Talk of balancing the budget
Talk of allowing various individuals to marry each other

Much like last week really...

Just another week of directionless confusion in the dying stages of the greatest ponzi of all time.

Mon, 09/30/2013 - 08:43 | 4005060 Whoa Dammit
Whoa Dammit's picture

In other news: Chocolate prices are expected to soar:

"Coca prices are up about 21 percent in the 3rd Quarter and match that with an increased demand and you could see the prices of your chocolate bars skyrocket."

Go short Halloween as no one will be able to afford candy.

http://www.11alive.com/news/article/308131/40/Chocolate-shortage-may-affect-chocolate-prices- 

Mon, 09/30/2013 - 09:37 | 4005196 Son of Loki
Son of Loki's picture

Cotton and merino wool clothing are u p about 20% this year I notice. They are also harder to find. Most other textiles are substantially reduced.

Mon, 09/30/2013 - 08:46 | 4005068 Bearwagon
Bearwagon's picture

Oh, come on ... roll over ... into the abyss ... pretty please ...

Mon, 09/30/2013 - 08:54 | 4005077 SheepDog-One
SheepDog-One's picture

Oooooo boo hoo we wants can haz QE moar?

So sick of this blown-out Ponzi nonsense ran by begging crooks who can't find anything left to rob and no one does jack shit about it just goes along with it. Such shit.

Mon, 09/30/2013 - 09:34 | 4005191 Son of Loki
Son of Loki's picture

 

I spoke to my two realtor neighbors this weekend. One says to buy now before rates go up ...the other says buy now b/c they're going down.

 

Mon, 09/30/2013 - 09:45 | 4005246 Tsar Pointless
Tsar Pointless's picture

Well, then either way, there's never been a better time to buy!

Winner-winner, chicken dinner!

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