Here is a clear signal to short the bonds. We bought TBT (scaling in). We also bought the VXX as a volatility play. These are trades which could turn into trend investments. At the very least they are reasonably low risk trades and hedge our long trades.
When we sold our C and BAC we didn’t go short — but it’s worth considering shorting the banking industry. Certainly a low risk trade.
Market shouldn’t crash until Tuesday. We suspect that as the bank foreclosure fraud situation becomes clearer the market will use it as the excuse for a pronounced downwave. Re this comment: remember, we don’t get paid for observations like this. We get paid for analyzing charts and not subscribing to market B.S..