It was just a week ago.
And many points higher.
We were talking about the rally that would take place once the debt ceiling debate was cleared. This, however, turned out to be smoke and mirrors as investors liquidated in the face of a debt downgrade and more Euro voodoo.
The risk off trade has been quite stretched, including $GLD, $FXF, $VXX, and $SPY. We're certainly towards the "fear" stages of our market cycles.
And then 2:15 came around today and no hint of QE3. This "bad news" then led to a solid afternoon performance in equities.
May you live in interesting times.
In this Episode of IWO Into the Close, we discuss:
- how looking for reversion for reversion's sake can get you burnt
- why the rally may be sold into, and how fast it can move
- the evidence that $GLD is at an intermediate term top
- your individual requests, including $F, $CBOU, and $AEA
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