Macro Man can feel the squeeze coming....so he takes profits on short NZD/CHF at 0.8268 spot basis (0.8233 to April 4)...perhaps services ISM will be the catalyst to recovery (for a few hours at least.)
...or not, as the data was poor. Yet equities and bond yields refuse to go lower straight after. This market is ripe for a squeeze....brace yourselves!
...or not, as the data was poor. Yet equities and bond yields refuse to go lower straight after. This market is ripe for a squeeze....brace yourselves!
3 comments
Click here for commentsWith all of the margin calls and extra option hedging going on in prime brokerage world that I hear of , I expect a huge rally as well
ReplyBears are pushing their shorts , not making much headway
I'm pushing my shorts and going to hold my breath till April 1st before I exhale. If you think there is good news going forward, let me borrow your stock - I promise to give it back with few dents in a few weeks.
ReplyYes, well the expectation of a bounce today was clearly wrong. I am guessing tomorrow's P/L will show that only too clearly.
ReplyHowever, I maintain that there are signs of near term capitulation across a number of markets, including equities. While that doesn't imply a bottom, it does raise the risk of a bounce.
Perhaps I've been a bit cute in trimming risky currency shorts and buying bond puts in anticipation of a bounce which, after all, I am looking to use to reset/add shorts.
Nevertheless, after a 6.6% peak to trough decline in more or less a straight line, I don't think a bounce is unreasonable. Particularly as short term shorts may wish to cover some of their risk ahead of Friday's payroll figure.