It looked like the floods were rising this morning and I needed to float the ark, sail to whereabouts unknown. But the waters have receded and the panic has lessened. Even still, there are great risks to this tape and I believe a large TLT position is warranted. Therefore, ergo, I am inexorably long TLT and expanding the size of my ark.
The dollar suffered its worst single day draw down in 7 years. As a result, bonds sold off too–denting the ark to the tune of 1%. Stocks are higher by 175, yet only 60% of them are actually in the black.
Today wasn’t a day to rejoice. It was a day to be grateful for being alive–given an opportunity to board the ark, alongside all of the zebras, cobras and parrots– before it sails off again the next time the floods rise.
Because when it does rise, the waters will be 10,000 feet deep, immersing everything in a deadly briny cocktail that will send us back to the dark ages.
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