Tuesday, August 31, 2010

Strength or Stupidity

Crude swooning and looking sick,
Bonds steadily rising and looking strong,
Yen breakout holding, (north of 115 on the FXY) with the ascending triangle implying a 140 target.

Yikes !!

And yet in the face of all this..... equities are higher. Even today at least until that last hour or so.

Either all these other asset classes together in tandem are way off base wrong or equities simply don't or won't get it.

Is it implied underlying strength by equities or abject stupidity by equities?

I fear there will come a point when the equity boyz and galz awaken to what crude, the bonds and the yen smell. Flash crash might look good compared to what might await us.

Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $22.52
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 92.15 stop @ $92.15
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 93.48 stop @ $93.48
Short 1 unit Apple ticker AAPL @ $275.20 stop @ $266.50

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