Alternative Reality

[gdl]

if anyone is interested if we get a 3 day drop the lows should be around 3700.
If only a 2 day drop it can actually be deeper because of a hard to catch capitulation crash.

I would be placing high odds that 3700 is the minimum on this current drop.

I put my hat out to Pretzel Logic who saw this possibility develop while 99% of all analysts were dead sure we already saw the bottom. I myself was very conflicted and kept betting for a deep drop at the wrong time. This one I captured, so far.

I wonder how the 10 year note keeps holding onto the below 3% mark as investors seem to plunge into bonds when stocks fall apart. This is the dilemma for investors. Rushing to the exits even when the exits seem blocked. At some point both stocks and bonds will get crushed together. How the explosive economic activity today doesn't force yields to jump higher is perplexing. Tomorrow will test the yields once again as I am sure resale house numbers will exceed their most optimistic targets.

Be mindful that they come out at 10 AM, after trading starts.
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IF we have a real crash scenario tomorrow it actually becomes easier to make money in the immediate future. We should see a 1200 point SPX shot to the moon right after in around 11 trading days. The milestone target and duration is just a rough guestimate. BUT it should be short and powerful.