- Low VIX, support from falling interest rate, perceptional substainable improvement in economic indicators. Chart VIX: http://twitpic.com/dtzyn
- Support from incoming data both LEADING but also vs. expected. Chart SURPRISE: http://twitpic.com/dtzzv
- Yield support - using extreme cruel and simple measurement: Steeper yield equals better outlook for economy: Chart US 10-2 Yield spread: http://twitpic.com/du00z
- Finally two risk warning: China is coming of... not good for medium term...http://twitpic.com/du03e & divergence: http://twitpic.com/dpzrh
We are small long DAX, short bunds, long EURUSD, long AUDUSD, and S&P on the day.... but will be square end of day......
The focus for next week will be to look for further erosion in China and keep very, very tight stops as DIVERGENCE rules across ALL major markets including the out of reality Sugar market...