It’s feast or famine in all markets these days.
The yen is at the best levels of the day, right across the board. It’s up at least 1% against all the major currencies. GBP is down nearly 300 pips against the yen after breaking some key support levels.
A few other major moves are taking place:
- US 10-year yields breaking 2% and continuing all the way to 1.92%, down 11 bps on the day.
- German 10-year yields down 7 bps to a record 0.44% low
- WTI crude down $2 to $48.06
- The S&P 500 down 17 points to 2003
It’s an old-fashioned flight to safety and the style of these sorts of moves over the past few months has been to continue unabated until they stop.
A rule of thumb that’s held up moderately well (with the exception of October) is to buy risk after the S&P 500 falls almost 5%. That would be near 1985.
Buying the S&P 500 around a 5 percent dip has been a good strategy in 6 of 7 instances
