The Dow lost 1,276 and the NASDAQ nearly 700 and yet the bools have still not learned their lessons. This wasn’t a profitable session for me with wallet, but with spirit. I quite enjoyed seeing row upon row upon row of bulls being mowed down, trampled over into the dirt from whence they came.
There was something that threw me off, however — bonds rose. It would seem implausible to me that markets could’ve already priced in all the Fed hikes. Not a chance.
Larry Summer just got finished tweeting he’d go 100bps hike on the next meeting. I think it’s fair to say 8% CPI is the new 2%. Ergo, rates are going, eventually, to 8%.
I traded down 98bps for the session, mostly cash now with some small bets both long and short. Although I had hoped for a session like this and I most certainly also warned you we could get one, I did not take a very bearish position because it was on par with gambling. “The Fly” doesn’t gamble.
We should expect further downside tomorrow, which might lead to a Stocklabs oversold signal soon.
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Bonds – flight to quality play
Quality?…lol
Indices are even over the last five trading days.
Bring it on, we need refreshment. “It’s fall in the garden, then comes winter”. Chauncy Gardiner. btw not a bad movie right now, kind of apropo (except the one scene my wife finds disturbing).