07 May 2010

Getting "Closer to Home"

Scary volatility. Got out of Risk Off trades too early to leave open Risk On trades given my view of economic recovery. Net net, win some lose some. Fortunate to have gotten "closer to home" (GS) early last evening before things got real crazy.

[Attached : Hourly chart of DJI .. see the plunge to 9869 and subsequent recovery .. down 481 points in 6 mins and recovered 502 points 10 mins later]

As can be seen from the positions table on the RHS, left with only long Gold (flight to safety) and long ED spreads (in accordance with original game plan for NFP, but way underwater now, in reduced size).

Hard to know what to make of markets now. I wish I could say that last night's spike extremes should signal the end of the madness, but I honestly don't know.

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