The collision of global markets and social mood

Wednesday, January 5, 2011

Not There Yet

Asia mixed. Europe red. Commodities red. Dollar up. Lower lows and lower highs on S&P futures. Why am I leaning bullish? I could be dead wrong, but I think yesterday's assumption is looking more and more correct: we're setting up for another wave higher. Timing is uncertain though.

Let's be clear. I'm still a structural bear, which means that I think the market is rotting from inside and that it's high on stimulants.

The tricky thing is that even if I'm right, there is still likely more downside. So I'm not blindly buying. As always, it's a game of patience. And for me, hedging.

Yesterday I lightened considerably up on BGZ. I will scale into more calls when opportunities arise.

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