Monday, July 06, 2009
A belated and abbreviated post today, as Macro Man's been busy dealing with both market and non-market issues. Keeping to the former, he's feeling a bit like Double-Down Trent from Swingers today, high-fiving Sue: "it's on, baby...it is so on....."
Risk assets of every description (other than Chinese equities, natch) are dumping this morning, for reasons that aren't immediately obvious. Perhaps it's the Indian budget (who said 6% plus budget deficits were just for Anglo-Saxon economies?) or perhaps it's just technical selling.
But it looks like commodities are breaking down (Dec 2009 crude looks awful)....
.....and equities are washing with Head and Shoulders this morning.
Macro Man has expanded his balance sheet, so to speak, this morning, by layering additional "risk-off" trades while increasing the delta of one of his "risk-on" hedges.
888, give or take, looms large on the SPX, as it's both the head and shoulders neckline and the 200 day moving average. A break (and futures are currently discounting a gap open just below the level) could bring some of Macro Man's fellow bears back to the party.
If so, Macro Man might have to consider doing more than just repeating Double-Down Trent's line.....