Before Europe opened, Asian markets were also higher overnight, and our markets opened higher as well. The flight to safety trade that I talked about yesterday is being sold today. All 3 safehavens are lower.
To wit, Treasury prices are lower, pushing the 10-year yield up to 2.03%. The dollar is also lower today, helping to boost most commodities. But gold prices are off sharply, falling back to $1815.
In corporate news, Yahoo finally got rid of CEO Carol Bartz, and the stock is rallying.
I mentioned yesterday that the VIX was making a series of lower highs. Today, the VIX is down -8% to 34.15. It has not traded below the 30 level in over a month. I suspect we will get back down there at some point this month, but it will be interesting to see if it bounces higher from its 50-day average, if and when.
Trading comment: Given the poor start to the month, I wouldn't' be surprised to see the market lift a little higher in the short-term. But I am still not changing my intermediate-term game plan of remaining defensive. I am only looking to add to stocks that are both defensive and high-yielding. I also want to add back to some of the index etf hedges I took off in late August.
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