- Mindset shift here. US (monetary and fiscal policy bullets blank) and EU debt impairment not going away anytime soon. Intervention of authorities every time markets suffer a hiccup has given rise to a "soft" unhealthy constitution. Henceforth, risk asset rallies are for selling into.
- USDX : Changed my stance for a weaker USD. The anticipated decline has taken much too long and the possibility of a base forming cannot be ruled out. Thus far, credit squeeze has not been as severe as 2008. But the possibility of a sudden short covering in USD as a result of say, a major European bank in trouble is high.
- US10YY : Closed the week at 1.99%, right at the 18Aug11 low (of 1.98%). Now we are really going to resolve the case of the double bottoms on all 3 time frames.. My guess is we will cut through and see much lower yields.
- SP500 : Weekly price action is poor. Daily charts show a bear flag channel. Stay short. Break of 1140 signals continued rout.
- Gold : Looks like sell-off over and we go back up. Still, the monthly parabolic chart worries me. Am uninvolved now.
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