Monday, 4 May 2009

Dead man walking

... yes, well, I am referring to myself... Although I do think that it ought to be the market.


For what it is worth, I think that given:

1. Clear finishing patterns on JPY crosses, such as AUD/JPY, CAD/JPY & NZD/JPY;

2. The VIX staying above its April lows;

3. Credit spreads flat to widening

the next major move in risk will be down.


To that end, I am short AUD/JPY in size. Because I believe that a move lower in X/JPY is likely to drag stocks and risk lower with it, I prepared a count under which it is possible for stocks to fall. This is a fairly long shot. But then this rally has been a bit of a long shot, with barely ANY retracements. And no rally off a major bottom has been without retracements.


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