The Statue of Liberty weeps for our heinous losses.
Truth of the matter is, today’s move merely negated yesterday’s gains. On the bright side, oil was marginally lower and the dollar is weakening on a daily basis–a net positive for our global exporting bastards.
Additionally, today felt like a head fake lower. You’ll know the move is the real deal when you see actual centaurs on the NYSE, kicking traders in the chest.
The one doomful development is the rapid appreciation of treasuries. Yields at back down to the lows. The market is calling bullshit on the reflation story. Should this persist, I can almost guarantee you the broader indices will drop to the February lows in a matter of weeks.
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If we see feb lows in a matter of weeks I’ll be sitting on a pile of coin so large folks will think there’s a new skyscraper in the city
The constant bid for Treasuries is part of a bubble in risk-off assets. I’m doing it myself with a barbell approach of heavy hedging (TLT and occasional SPXS) lots of cash (to deploy around Exodus OS readings) and risky assets like biotech at the other end. This is being fed by the market’s reaching near the old highs, the upcoming Brexit vote, the signs that global rates continue to deflate, and the tendency for shit to blow up pretty much at random. I’m undecided if the Brexit vote will pop the bubble or not. But I am sure that we are in such a bubble.