Wednesday, August 10, 2011
Reshorted S+P yesterday and today between 1145 and 1180, bear markey rally over. Looking for the downward move to continue. Closed my short 30yr bond position at a big loss. I still think buying treasuries is crazy, but you have to listen to the market. It was kind of a hedge anyway, limiting S+P profits. Also closed my short Yen (hedge) position. Went long Australian $, Canadian $, and Swiss franc, all trading positions against a dollar guaranteed to fall by the fed. Only extreme foreign central bank action in the name of mercantilism will stop the US$ slide, but the fed can overwhelm any and all of them if it chooses.