Morning Thoughts December 20

No changes in the portfolio yesterday…85% cash.

Just a couple of charts for perspective:

Last line of defense for equities here…on the S&P 500 we are at the 61.8% retracement of the latest rally.  If we fail below 1200 it will become incrementally more difficult to not fall into the abyss soon.

The German Dax looks aweful…a break below 5500 will trigger the bear flag in place and has potential down to the 2009 lows, eventually.

The high yield bond market hasn't sold off as much as equities…usually high yield leads the way.  That is somewhat bullish in the near-term.


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