Focusing on the Moment
The Wheels have come off
It only took 20 months from the January 26, 2018 Fracture date when the S&P traded at 2876.
We were a month early on the actual Inflexion point
The date was July 26 rather than June 20 when we rolled out of long B-bond ETF TLT into triple short stock index ETF’s SPXS and SQQQ.
So while we left some money on the table, things are working. Since June 20, TLT is up 4.0 %, SPXS is up 8.9 % and SQQQ is up 12.9 %.
No doubt there will be a lot of volatility going forward, Trump will try a lot of antics, and his lap dogs, Mnuchin and Powell will be doing his tricks.
But the fact remains he has stirred up China, and they are going to teach him a lesson or two. All the years of being a Reality TV star and Casino owner may not have taught him everything.
The 10 year yield chart still looks to have formidable bottoms made in July 2012 at 1.381 and July 2016 at 1.321. The funding of government deficits going forward will probably keep the 10 year from going that low, at the moment the current low is 1.740.