The trading floor of the New York Stock Exchange just after the crash of 1929
Over the weekend, the events were covered by the newspapers across the United States. On Monday, October 28, the first "Black Monday",more investors decided to get out of the market, and the slide continued with a record loss in the Dow for the day of 13%.
Obviously the Stock Market didn't catch it, and stages a rally as though these higher long-term yields meant a brighter future.
Since May there have been a sharp disconnect between stock markets and bond markets. As they will necessarily reconnect at some time my estimate is that will take place between the 8thand the 17thof September.
It is very important to understand that these turning points can't be estimated from a macro economic or technical point of view. They can be understood only with an option valuation approach.
