“It may help to keep in mind that no one said that this was going to be easy. This doesn’t mean that the basics are not simple but like all fascinating and captivating endeavours, the actual practice is far from easy. Embrace this, for this is exactly why it’s worth playing and trying to master any game.”

As we discussed in the Weekly Outlook Video, the focus will likely remain on more defensive positioning as we get ready for this ‘mega’ Thursday. Bonds and Gold have been the main tell so far, so no big surprise with the acceleration we saw yesterday, especially in terms of Yen joining the party. Remember that retracements are healthy (on both sides) and that betting on sustained straight line moves is not a reliable long term strategy.

The is very little to add to what we have been discussing but once again, we want to point out that sooner or later, VIX will spike and we are betting that it’s not going to stop in the mid teens this time.