EOD Market Update

For now I have no plans to change anything, just let the short positions sit and work.

HYG is now starting to fall apart so the arbitrage hold-out looks to be about to disappear.

This market feels a lot like the July/Aug 2011 market that I mentioned last night when 1- year yields were above 3% and the market fell like a rock losing nearly 20% in a snap.

There's an obvious change in character, fear is truly palpable, divergences that start are getting run over.

This isn't to say there won't be volatility, but as I was saying Friday, "In many assets we are coming down the right side of a top", that's how the market is behaving.

So any trades will be based on the merit and open positions allowed to work.

I'll post some charts after the close, but tremendous amounts of damage were done today. A few assets here and there look like they want to try to retrace some of today's decline, but I've seen enough get run over in the last 48 trading hours that I'll believe it when there's significant confirmation.