Bob Hoye – When Bad Things Happen, It’s Always In The Fall (Part One)

from FinancialSurvivalNet

The latest Flash Crash Blast. A lot of stocks got slammed and then came back resoundingly. It happened to big stocks and small stocks alike. Knight, the market maker responsible for it could be facing insolvency as a result. If things are going to wrong, they will go wrong in the fall. The corporate bond market has been rallying like crazy but appears to be getting close to its high. It looks like its time to start lightening up on them and perhaps treasuries as well. It made an Eiffel Tower pattern with a clear downside pattern ahead. The same is likely to happen with the emerging market bonds. People have been chasing yield and looking for it in all the wrong places. Interestlingly commodities may also take a hit. They’ve risen in large measure due to the Midwest drought. There could be trouble this fall. The last 5 crashes going back hundreds of years have always occurred in the autumn. Will this crash be different than the rest?

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