While everyone is fixated on the price of lemons at the grocery store, the 10yr is plunging in yield again, suggestive that a flight to quality and price deflation LOOMS just around the bend. I’d say this is a very very precarious tape. As such, I am 75% cash, shed 30bps for the session — only long a few uranium stocks and SPXL for an overnight hold in the event we bounce in the morning.
If we do bounce, SELL THE OPEN.
If we crash the open, buy the open and sell by 10am.
The market is seasonally weak in September and before you know it the Halloween scares will be here, and then it’s smooth sailing into National Festival Day.
While the mood is grim and the pestilence is heavy on the heart, find solace in knowing we will trade great again because we always do and always have. Our jobs from now until then is to trade smart and stay close to gains and avoid, at all costs, blowing up.
If you blow up now in a bad tape, you’ll never be able to profit in the great tapes.
Remember that as you segue into moronic penny stocks with zero prospects other than the next 15 minutes.If you enjoy the content at iBankCoin, please follow us on Twitter