Bitcoin Postscript

Last week's Digest Issue 51"About Bitcoin [Charts]" presented some introductory information about Bitcoin such as symbols for cash, futures, and a closed-end fund. However, the futures section lacked any comparison of market size to alternatives used for either hedging or speculation. A data table with Bitcoin, crude oil, and gold fixes that shortcoming. First a Market Review through last Thursday, December 24.

S&P 500 Index (SPX) 3703.06 slipped 6.35 points or -.17% last week after reaching a lower low on Monday as the previous Friday's key reversal forewarned. However, it recovered and traded in narrow ranges on low volume the rest of the week. Unless an unexpected fundamental event occurs, volume will likely remain low and trade in narrow ranges until next week. Just in case, providing support – both the upward sloping trendline, USTL from the March 23 low, and the 50-day Moving Average both cross just under 3600.

iShares Russell 2000 ETF (IWM) 199.01 gained 3.67 points or +1.88% last week compared to the small decline for the SPX, reflecting rotation into mid and small capitalized stocks along with profit-taking in some previous leaders while holding on to the "decider" title again last week.

Invesco QQQ Trust (QQQ) 309.56 added .06 points or +.02% last week and like SPX made a lower low after the previous Friday's key reversal and like the SPX trading ranges compressed and volume declined, all typical for a short holiday week when both investor's and trader's attention turned elsewhere.

CBOE Volatility Index® (VIX) 21.53 slipped .04 points or -.19% last week. Our similar IVolatility Implied Volatility Index Mean, IVXM using four at-the-money options for each expiration period along with our proprietary technique that includes the delta and vega of each option, slid .36 points or -2.08% closing the week at 16.91%.

The IVXM and SPX charts follow.


VIX Futures Premium

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Disclaimer: is not a registered investment adviser and does not offer personalized advice specific to the needs and risk profiles of its readers.Nothing contained in this letter ...

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