Today was a classic bottom. We had pandemonium in Asian trade, paired with blowout FX markets and bonds — not to mention Apple’s warnings. Today we reversed up and closed with nearly 90% breadth. Granted, we had a limp close — but I believe that to be a trap.
By the textbook, based upon the collapse in the 10yr, rise in Euro and GBP — we should continue higher tomorrow and climb the wall of worry into the quarter end.
I spoke to an old friend of mine yesterday. You might know him as “The Devil.” I will have you know, he made the call — went long yesterday into the panic, and more or less shares my opinion for continuation.
IF we fade tomorrow and continue down, we might really see a panic. But let’s not even think about such a scenario.
I closed +150bps in trading, +313bps in quant and +10% in algo account — no hedges into tomorrow’s grande show.Comments »