Tuesday, February 11, 2014

A.m. Observations

There's only one thing that matters to me this morning after a Carry cross ramp in to the wee hours of the morning and that's this...
It's an intentional ramp in low volume hours and when they start to pick up it starts to fall apart (just after Europe's open.

Is anyone surprised by what Yellen said? Do you really think Bernanke and Yellen wouldn't have coordinated? He was there to lead us through QE as he's a scholarly expert on the subject, she's there to lead us out of QE.

All of the rest is make what you can in between.

ONE THING TO KEEP AN EYE ON IS THE BREAKING UP OF CORRELATIONS, I MENTIONED GOLD YESTERDAY, THE CARRY TRADES ARE SHOWING MORE AND MORE DISTORTIONS WHICH LIKELY MEANS THEY ARE LARGELY CLOSED.


As far as everything else, not much has changed since last night, it's just a matter of managing positions and setting up the next round of trades and trying to stay a few steps ahead of the herd.

I'm not a big fan of early a.m. trade, but I'll be keeping an eye on it and deciding whether or not I want to add to two short term trading positions (both bearish), VIX calls and SPXU long.





No comments: