Wednesday, April 29, 2009

It is disappointing to be short & long this market....


Click on chart to enlarge
Dear Investor,
Nothing much to add we are now into 6th or 7th week w. extremely tight range trading going on.....the GDP today was a disaster - but in the land of the Happy.. its no problem, but do spend 5 min. reading through this: http://www.ritholtz.com/blog/2009/04/gdp-down-61/
I am still recalibrating my model - but right now the mechanic part of my model is long, while the discretionaty part SCREAMS - selllllllllllllllllllllllllll......making me close to neutralising the positions.....
Bigger, broader macro piece tomorrow post the FED meeting...
Positions:
Short EURUSD, Long EURSEK, Long Gold, Short S&P and DOW Futures........
Safe trading,
Steen

2 comments:

MW said...

The bull case seems to be that inventory drawdown is positive (true, but it has further to run) and that govt spending will pick up in 2Q. Not what I would call 'quality earnings' and public spending is less productive thatn private sector spending. Add to that organic income growth (NOT transfer payments) will decline as the U-rate rises, and it's hard to get excited. That's my 2c.

Good trading and thanks for posting. MW

Anonymous said...

Steen...come back....please!