You have probably seen stocks down today. The dow is off nearly 200 points and the Nasda is down 50. But, everything American is getting whacked today. The U.S. dollar, stocks, and bonds. Look at the chart on Treasurys here – especially the long end.
Something is happening in terms of how investors see the risk of holding dollar assets. This is not just about jobless claims or Fed data. Perhaps, it is the potential downgrade of U.K. sovereign debt. But, the Pound is holding its own, so that’s not it.
Let’s see how the market trades at 4PM. If it sells off at the end of the day, that is a very bad sign.