Risk on, Risk off!

I got another leson in that concept from the new market monetarism blog.

What are the signs that the markets are in a “risk off” mode? Normally we would see stock markets drop, the dollar, the yen and the Swiss franc would normally strengthen, bond yields (especially US, German and Swiss) will drop and commodity prices will tumble.

OK, its like a one day deflationary impulse.
In channel theory that would be a day to conserve inventory, minimize inventory risk. Transaction rates should fall off and inventory build up.