"Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful."

"Recap Aug. 30"

Stocks drifted sideways to finish the week higher by a healthy 2.7% on the S&P 500, leaving the broad index near the upper end of its August range and within 3.5% of its high-water mark.  The highest close for the Dollar Index since May 2017 helped pressure commodities, as WTI crude and gold finished at $55 a barrel and $1,523 an ounce, respectively, and Treasurys ended little changed with the two- and 10-year yields both settling near 1.5%.  The VIX closed at 18.5.

The trend is still down, full hedges on.

"Recap Aug. 22"

Stocks shook off early losses to leave the S&P 500 little changed for the day, as the broad index sits near the upper end of its two-week range and green by 17% year-to-date. Treasury yields ticked higher across the board, with both the two- and 10-year yields settling near 1.62% (the three-month vs. 10-year spread remains inverted by more than 35 basis points).  WTI crude and gold settled at $55 a barrel and $1,499 an ounce, respectively, and the VIX rose 6% to 16.70. Meanwhile, economic data continue to indicate trouble, as this morning’s reading of the Markit Manufacturing PMI for August fell below 50 (indicating contraction) for the first time since September 2009.

Market Intelligence Report Overview

The market is oversold and made a momentum low...........but possibly not the price low. 

Volatility... staying with us for a while.

Investors... full hedges on.

Traders... to each his own.

Hedges did their work today. Moving down the stops on the short hedges and enjoying the ride.

"An overnight devaluation of the Chinese Renminbi pushed the exchange rate to more than seven per dollar for the first time since 2008 and spurred another sharp selloff, as the S&P 500 sank 3% for its worst one-day showing of the year.  The broad index saw its year-to-date gains whittled to 13.5%, and sits 6% below its July 26 highs

Treasurys ripped in near lockstep with yields declining 11 or 12 basis points across the curve and the 10-year falling to 1.72%, 35 basis points above its record close in July 2016. WTI crude fell back below $55 a barrel, while gold rose to $1,463 an ounce, its best close since May 2013.  The VIX finished above 24 and has nearly doubled in the last five sessions." 

Socks had another rough day, fell for a fifth straight day, with the S&P 500 wrapping up the week down a meaty 3%.

The hedging model is downtrend, full hedges on. Risk off.