At This Moment In Time

Moodys downgrades Spain. Bloomberg puts out fluff contradicting it. The Aussie, Loonie, and Swissie look like they're reaching their near-term limits. Grains and softs are down. So is oil. So are metals. Treasuries are up. Why?

The dollar is up, and it's got some juice behind it.

Are we back to a world that suddenly cares about risk? The structurally systemic risk of a monetary system based on artificially supported prices, monetary stimulus, default risk, credit contraction, deleveraging, and overextended consumers?

At this moment in time, it looks so. But I'm not celebrating yet.

I still haven't been proven wrong yet. Yesterday I thought we'd break out above the upper trend line of the triangle. Right now were closing in on the lower trend line. So nothing has been decided yet. But a whiff of reality has crept back in.

I took off some more SDS yesterday and added some SPY 132 calls, so this action is not really what I want to see. But I'd rather see reality than pink flamingos. I can trade reality.

If the S&P decides to break down here, 1275 could be the next target on the cash index. If by this afternoon it looks like we're stalling, I may try some OEX 590 or 585 calls.