Yellen has given a surprise to the market. Her reputation as a booster for stocks AND bonds has been completely turned around. Expectations were just too high. The concurrent weakness in stocks, bonds, and strength of the dollar makes me the most bearish I have been all year. The Chinese yuan looks like it has entered a death spiral, and emerging markets will probably take the brunt of this Fed pain.
Game plan has been revised. Dips down to SPX 1840 are no longer attractive to me, will lower my buy cover and dip buy target to SPX 1810 - 1820 area. And keep the same sell the rips at 1870 plan, via emerging markets/China short as the proxy.
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