Well it's now September...and market is busy trying to figure out which is more important:
The negative falling Chinese market (down more than 20% from peak...Chart: http://tinyurl.com/n784hw Hang Seng divergence vs. S&P ...
or the rising FEEL-GOOD-FACTORS as seen in the economic data....
Now let's start with the "improving data" :
First, data is late, very late relative to the decision making of a macro speculator - so late that they are largely uninteresting, this does not mean there is not people and investors looking over each and every data point - but let's face it: if you inflate an economy with TRILLIONS of US dollars the data will improve - the surprise is to some extent that they are not even better - the fact sentiment indicators now shows the economy is out of recession, is...at best useless - at worst confusing.
Bank lending and housing market is still falling, yes the fall is slowing, but there is NO CAPITAL incentive to neither increase balance sheet of the banks or.....for the home buyers to increase their bids - even 1-timers tax credit is hard sell, and when the first level of sales is done, the banks have plenty of homes on their books to sell.... please do NOT let yourself get carried away with this nonsense.
The sentiment data is now the most bullish in years..... my friends, neighbours and their dogs are all telling me how much money they are making in the markets (you seem to have forgotten the fact they lost 70% last year...but short-term memories are good for "investors"....)
Check this blog on the very issue: HTTP://www.tradersnarrative.com/will-september-kill-the-rally-2912.html
I can't say we are printing money, but somehow we are keeping an even keel in this market, waiting, waiting and waiting for some final direction to play out.........The fixed income market is stubbornly bid - and lately we have noticed FI carries more weight than other markets... we also
note how Crude is leading forex/equity: HTTP://twitpic.com/fz41k/full
The commitment is relatively low, but here is the present positioning:
Short S&P, Short DAX, short shipping, short Norway Index... - all with medium conviction. Entry levels relatively ok - leaving room for......stop loss --- Stop Loss.. two closings above high..
Short GBP/USD - short since 1.65ish - target 1.35/1.40 minimum - The UK is falling out of bed - as confirmed by PMI today..... also long DXY (US Dollar index)
Commodities: Short Crude since 64ish....
Fixed income: Long 90% of cash in short-term Danish Government bonds and small long Bunds...
August performance was small down......The Puma Macro and other funds will launch later this month with daily pricing...