12 March 2013

SP 500 and NDX Futures Daily Charts - Quick Flip

We had a little backtracking today, but stocks bounced into the close.

VIX climbed a bit, and I took the highly levered bets off the table remarkably near its apogee. Thanks.  Every little bit helps. 

I have a balanced short riding just for grins, but it is greatly reduced. 

So what next. I still am thinking that the wiseguys will have a go at 1570 on the SP futures before this thing falls apart, but keeping the leverage under tight control at such a dodgy time is not so bad either.  To put it in a briefly pithy statement, these Wall Street jokers are barking mad, and Washington is living on their own planet.   Words do not quite capture how I feel about this.

The event risk here is enormous. These markets remind me of a big fat souffle, full of the air of HFT, QE, arrogance, and leverage. If someone slams the oven door it could go quite flat without much more provocation.