Like several of my colleagues, sold May ftse 4300 calls as we think this rally may run out of steam, but if not the size of the position means some comfort in adjustment (like I meant to do in the last few weeks, but failed!).
My civic duties show me a side of the real economy that doesn't bear looking at- the awful poverty of the low paid, and debts pushed ever onwards until the bailiffs arrive.
I have to counter this with the knowledge that Darling is laundering our money into the banks, so they can play their games with the stockmarket, and given that they have lost more than they have ever made, they are on the biggest revenge trade this side of '87.
A wise old trader once said to me never confuse what looks like downright viciousness with stupidity-given that banks possess both those 'qualities' in spades, extra caution is warranted.
It is sickening to see the big US banks get away with murder, and I wonder if the US will see the kind of unrest that our Gallic cousins are famous for.
Not sure where Vix is headed now but a new low corresponding with the bear rally is in place. Personally I think the idea of a W bottom rather than the 'V' is more likely-I was wrong about this in 2003,2004,2005 however, and hope I have become less dogmatic-just because the markets SHOULD be on the floor, in one's estimation, means nothing.
VIX chart may mean something more than I can see in it- I think a small blip up next week maybe, but a new lower range could be defined as we head into thinner trading.
No comments:
Post a Comment