That’s what the average investor’s portfolio could be a scant two months from now if the analysis is correct.
That is; markets are stretched to obscene levels, bonds breaking down, rates rising; the nearest corollary is August, 1987.
From a timing standpoint, it could be important. That August was a Fibonacci 34 (-1) years ago. Well within the margin of error.
Yesterday’s trade set-up (not a recommendation) was timed perfectly.
Today, that trade (if entered) would be up by about 2.8% at current levels. The stop now gets moved to 15.54, today’s low. Of course, this is for illustration purposes only.
For a bond trade, 2.8% is significant for a single day. It looks like much higher rates are ahead.
Meanwhile, biotech (IBB) has given yet another sell, sell-short signal. IBB briefly penetrated yesterday’s high of 133.39, and is reversing.
If price action continues lower, it’s a bull trap; a false breakout.
We’re actively short the sector via BIS (not a recommendation).
Charts by StockCharts