Stocks are much, much lower than where they were last night. That’s what air-pocket, overnight risk looks like.
Central Banks are a problem. This whole negative rate thing has equity markets tripping. Deutsche Bank’s “we’re rogered” memo was our tell. Here’s an entire MBA worth of economics for stock investors: The more traders are talking macroeconomics the deeper your bomb shelter needs to be.
Right now everyone is talking macro. The S&P 500 Head and Shoulders pattern has a neckline slice with a close below 1850. The 10yr yield is at 4 year lows (Congrats, TLT longs). Yellen is testifying before Congress.
We’re either going to make a very sharp bottom or suffer a hideous death. There is no in between.
Thank God it’s Friday*.
For more please see 3 Rules for Bear Markets
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