CHART OF THE DAY: You Either Have A #Process Or You Don't

Why did I move to net SHORT last Thursday? You already know. The bloody title of my Early Look was “Sell Signals.” And, yes, there was a minor US Equity market correction on Friday, but the real cross asset class correction came around 11AM yesterday:

1. US Equity Beta – SP500 made its LOD (low of the day) at 11:06AM ET at 3805
2. European Equities – got smoked into the European close
3. US Dollar ramped to its high of the day at 11:09 AM ET
4. UST 10yr Yield sold off to its LOD in conjunction with all of this too
5. US Equity Volatility (VIX) shot to 26 by 11:06AM ET as well

There are OODA loops to risk manage, then there are those – that one was epic.

If you knew A) it was #Quad2 and B) these macro moves were probably episodic and non-TRENDING because C) they were driven by a constellation of hedge funds buying (protection) and selling (down gross exposure), you made money in that tight loop.

If you didn’t… well, you didn’t. And you should re-evaluate your decision making #process in that critical window of time.