Consolidation time (but be careful about the holiday)

Bond market signals that enough is enough

Demand for the safety of 30-year bonds was much softer than the market was anticipating and the bid for bonds in general has evaporated.

The miss could be a sign of liquidity or something else, but it could also be a sign that the market isn't yet convinced that the US and global economy is in trouble.

Some of the moves today look like blow-off tops/bottoms to me, including gold and possibly USD/JPY. I think we have seen the worst for now but I worry that any bounce may only last 12 hours.

Holiday time

We could see a reinvigoration of worries tomorrow because of two fears: 1) China is returning from holiday on Monday 2) The US is on holiday Monday.

A US long weekend in a tough market often leads to pre-long-weekend selling and uncertainty about China returning is another reason to get out of the way.