THOUGHTS ON TODAY’S RALLY
A news driven trampoline of economic indecency and the prelude to a steady European diet of fiscally whorish behavior that would make Ron Jeremy blush.
A break of the August lows would be my buy trigger on the downside. I'm looking for 1080 on the S&P 500 as an extremely favorable risk/reward entry. If I don't get it, I won't chase and will reassess once we break out of this range to the upside.
Let's say I suddenly woke up with a bullish hair up my arse that caused me to put on long exposure in US equities tomorrow morning. My problem would be that the risk in this range is so wide and unpredictable that it would be a difficult trade to manage.
The "embracing of risk" positions I am currently holding will benefit from strong equity prices without all of the volatility.
So I wait.......
