- China RR hike, higher inflation, rumors of weekend interest rate hike + EU debt spreads widening all = reversal of QE2 trades. Even with positions at 10%-15% of usual size, the P&L fallout here this week has not been insignificant. Thank God for rule #12.
- However, think that this wholesale unwinding is opportunity for locating ideal entry into good trades eg long CAD. [AUD too, but China factor warrants caution].
- USDX : 76-78 range within downtrend still.
- US10YY : With short end at zero, TY remains a buy and hold.
- S&P500 : So much for strong buy. Cut loss last night given close back under 1217. Double top?
- Gold : This has never been an easy ride, even when one is on the right side. Suffering on tiny position.
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