I had stated in an earlier entry that I would not be completely satisfied, unless we get a full blown crash.
I walked into my home office this morning to discover that I may yet get my wish.
The 30 year bond chart had been left on my monitors from last night. And here I found that the long end was … and is …. screaming higher than a cotton ball in a twister. Japan’s Nikkei was nailed to the tune of 3%. I couldn’t help but think of a Forex trade from last week … short on AUD/JPY.
It was a profitable trade, but boy I wish I had let that sucker ride.
U.S. Equities, on every chart I look at, are turning over with momentum clearly on the downside. It looks as if being cash for the month of September was a great call. At the time of this writing, that simple, lowest-of-all-effort-trades, is up over the market by 2.97%. Our teaching account has a trade on that is doing just a little bit better. Not much. But a little.
We may not crash. Perhaps this is simply a re-test of the August 25th lows. Never fear. If we do crash … well … crash’s are followed by stupendous rallies.
History has this way of repeating itself.