A lot of pre-open posts, but the yuan news popped all of the markets. The initial entry into a short is via a long bond position. TLT was down sharply to 29-day M/A. It is in a triangle which should be a continuation of the rally with the expected decline in stocks.
Although I want to keep my powder dry until this afternoon, the new backdrop means the peak in enthusiasm may have occurred overnight. Bonds reacted downward so I bought bonds as a proxy for short stocks because the reacted to support. The actual economic impact of this tiny revaluation is nil, but it was politically adept.
As far as stocks go I'm looking at the outer edge of resistance at 10,625-10,650 so I can go short on the slight chance that the market rallies that high. Other than that I want to wait for I1 to fulfill it's peak this afternoon.
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