Yuck! I’m not liking this week one little bit! The ONLY good thing is that I lightened up so much, so the damage is attenuated. And what financial instrument is yanking the bulls out of the quagmire and into victory? Bonds, of course………..
In doing so, the recovering bond market has lit a fire under equities, and the ES has roared higher by triple digits in a matter of just a couple of days.
And, in turn, fear/volatility is absolutely collapsing, having fallen from 22 to nearly a 16-handle. How ironic that the horror of Gaza would turn into the basis for a relief rally.
Don’t lose sight of the big picture, however. I haven’t. Indeed, I’ve taken advantage of my 54% cash position at the start of the day to start pushing back into what I consider appealing positions. I’m not going to get aggressive until after Powell, however, since that tends to muck things up quite a lot.
