I May Still Get My Wish

Posted on Sep 24 2015 - 10:42am by Sharpe Trade

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.

1 Comment so far. Feel free to join this conversation.

  1. NewLife September 24, 2015 at 3:16 pm - Reply

    Let’s see if today’s afternoon rally will hold. I was looking for more volume,but it’s not so substantial that it has a good chance of maintaining a bullish rally for more than today in my opinion.

    As always, time will tell, but I won’t be surprised to see today’s lows blown through tomorrow or early next week.

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