Plain ugly. What else can I say? It was always in the back of the minds of the perma bears that this day might come but none of them ever really thought it was possible. The Fed could do a one point cut next week but will it be viewed as a move of desperation? Remember Japan in the 90’s and zero interst rates? That party didn’t end well. We will see. The VIX or fear index finally moved above 31 for a 14% move today and traders I talk to are literally punch drunk at this point.
I took a very nice gain in SKF today(short financial) and USO is hopefully starting to go my way. I’m not using today as any gage for oil as some futures expired. I think next two weeks will be the test and I think there is a good shot at a meaningful nosedive. International leaders are meeting April 12th to bilaterally figure out a way to strengthen the dollar and I think as that gains traction in the market, commodities in general are due for a meaningful downturn. By the way that DCR trades nicely.