In a dynamic, fast-paced market, I am a fount of thoughts and ideas. In this light-grey, creeps-up-each-day, zero-volume of market we have, it’s one hell of a thing to try to think of anything to say. Pity me!
Still, let me close the day with an interesting relationship: that is, between the small cap equities and bonds. Here is a new ratio chart I just created between the $RUT (Russell 2000 small caps) and the /US (continuous contract of bonds). The similar reversal patterns of today and the pre-financial crisis are alluring.
Looking more closely at a nearly identical relationship (IWM versus TLT) we can witness the detail of this rounded top. It’s a beauty!
I am more aggressively positioned now than I’ve been in many weeks: about 160% committed across 60 short positions. Of course, in my personal life, I have a banana boat filled with gold, but that’s not material to the charts above. Suffice it to say that gold up, stocks down, is my dream world.
