Wall Street’s today’s rodeo isn’t over just yet. Traders and Investors may have spent a majority of the day moving around their portfolio , trimming positions and hedging. Mainly, I am positioning for a bigger move LOWER this afternoon. I do not think we have a rally coming up into the weekend. I could be wrong of course, but that is where I am putting my bets.
All the usual suspects are soaring as investors flee to safety: volatility, gold, bonds, etc. Today’s move is the single largest percentage gain for them since the financial crisis.
TLT Hourly Chart
This isn’t as disorderly as the crash was back in 2000, 2008 or 1987 (though I was still in grade school in the ‘87 crash).
Right now, looks like hedge funds may be taking the opportunity to rearrange positions. I still think $285 in the SPY is in the cards, maybe not today, but sometime next week.