This week's Ponzo Updates indicate a developing risk environment for SPY and VIX. These are outlier scenarios but given recent nervousness about the Brexit those low odds situations may see increased odds for realization and we'll watch next week's updates closely to see whether those scenarios have become more or less probable. I hope everyone looked at Mauldin's post yesterday...it sounds scary but he makes some compelling arguments. I love this tag...“Recession is when a neighbor loses his job. Depression is when you lose yours.” – Ronald Reagan
Although the market was red today the technicals actually indicated a positive day....falling bond prices and stabilization of the VIX.
We had some nice green runners today in the big caps GE and WMT although the financials got hit hard on fears that large segments of credit debt may go into default.