The Great Unwind

The great unwind continued today. The deleveraging is uncontrollable. Mutual funds have reported $72 billion in withdrawals. The Mexican government is afraid to draw down reserves, according to Bloomberg. Every time the market made a move today, the unwinders were on the sidelines selling more. At three o'clock the floodgates opened. Volume ballooned and the bottom dropped out. Spreads started to open up. If we have an opening like we closed today, they'll have to close the exchange.

However, I continue to be biased towards buying US and selling international equity, as the strong dollar gives me a little confidence.

Two trades today. I sold my bonds in the morning for a tiny loss, and I bought more XGM at $3.88, as it plunged today.