You can be sure of one thing: Volatility is back!
Good news on that BUDGET deal was trumped by a
bad Treasury Note action. The main reason why markets will go down is not volatility spikes or inverse volatility ETFs blowing up BUT the rising debt to pay for Trump's trillions. Yields are already rising and today's Treasury note auction went real bad, markets tanked immediately. Track the bonds and trade accordingly.
"Wall Street’s fear gauge is blinking red, in part because it’s dawned on investorsthat a massive, debt-financed tax cut isn’t exactly a great prescription for an economy already growing above its potential.
But misguided tax policy is nothing compared to the possibility that Washington will mishandle the upcoming deadline for raising the U.S. debt limit, which the Congressional Budget Office estimates could be breached during the first week of March. Bond traders are taking note of the date, as 4-week T-bills—set to mature the week of the deadline—priced 8 basis points above the same bills maturing a week prior"US Treasury auctions 10-year Treasury notes at highest yield since ...