Risk Off

So jobless claims we're basically in-line with estimates coming in at 423,000, a fall of 9,000 offering us no help. FedEx was even worse news coming out and saying they're feeling the global slowdown even in China. Futures are falling of a cliff and suggest a market open right near the lows of the year. So in 1 1/4 sessions we're giving back the entire rally off the lows that took us a month and a half to accomplish. It looks like those that suggested the entire rally was built on anticipation of QE3 were dead on. I didn't see it that way. I'm still having a hard time believing its a bad out there as the numbers suggest. July was horrendous and August was pretty rough too but it already feels better to me. I guess I'm crazy. With all this selling you'd think total "risk off" situation, right? So what's the "risk off" trade doing this morning? Down over $70 to $1735 per troy ounce. You'd think if people are selling stocks the money would go into gold. So where's the money going? That juicy 1.8% yield you get in the Ten-Year? I doubt it. Oil is coming off 5% and the Euro has fallen to $1.345. Calmer heads could prevail by day end so I would caution against panic selling and getting short, but watch 1120 cause if we breach it could get ugly.