"Buy The News" Reaction....Is This At All Possible Right now?

It might be unlikely, but it is not impossible. So investors need to remain nimble.

• Even though we believe that the “reset process” for the stock market has further to go…and thus we still believe the market still has further to decline…we also know that it’s not impossible that today’s announcement out of China just might provide a “sell the rumor, but the news” reaction soon…..We realize that it’s a BIG stretch to say this, but experience tells us that it’s not out of the question. (When the news gets VERY bad…and the market gets VERY oversold…we sometimes get some VERY surprising rallies.)

• Treasury yields are getting very overbought on a short-term basis (and thus Treasury prices have become very oversold). So, we could/should see another reversal in the Treasury market before the week is over.