The past two weeks in the markets have seen the S&P 500 go down a whopping 3% from its rough highs of 2120.
While I do see some signs of margin selling, it is still quite light and I am still not interested in dipping my toes further in the market.
I would love to see evidence of large-scale margin liquidations in illiquid securities. That makes me salivate financially, but we are another 100 points away from the S&P descending further before this may happen.
A few other points:
* 30-year US treasuries seem to have peaked at 3.2% and are now trading at 3%. The 3% gain you would have lost in the S&P 500 you would have gained by investing in long-term treasuries.
* The Canadian currency has also been hacked to death and BAX futures are hinting, but not fully pricing in, the notion of another interest rate cut to 0.5%. If the Canadian currency slips further I will likely convert some USD to CAD, likely around the 76 cent level. This seems to be directly correlated to the drop in oil prices.
* If the technical glitch on the NYSE was determined to be caused by hackers, I am curious how this would be priced into the markets.
Positions:
Happily majority cash.