Tuesday review

Lot of take aways from today.  The Senate voted on the debt deal and it passed.  SPX fell 2.6% and is now down on the year.

4/5 of my positions were poised for a rally on the deal.  I thought we were oversold and expected a relief rally which never came.  As I pointed out this morning the biggest move today was rates - 10 yr hit fresh yr lows of 2.6% and the 30 yr broke 4% and closed at 3.93.  An insatiable appetite for risk free assets and lower global growth targets sent TLT up 3% and is now touching the down trendline I posted this morning.  I attempted to buy TBT on an oversold bounce and got wiped out.  I also got stopped out of my core FAS position as XLF broke 14.50.  It closed down 2.7% at 14.35.  I also shorted gold on the resolution of the debt issue -- less uncertainty -- which has been the main catalyst for gold recently.  Risk aversion trumped this thesis and sent gold to record nominal highs, up 38 to 1659.  My only winner on the day was EUO, which I sold for a marginal profit.  Overall a very painful day, took my losses, which ended up erasing all of July's gains.  Need to learn to keep tighter stops.

One technical I got right this morning is SPY breaking yesterday's lows and testing 126.  This is our third test of 1250s in SPX and there is very little support below here, possible 1220.  Another interesting technical is SPX falling below the 200 mda and breaking the uptrend line which was put in place since the lows in 2009.