Wall Street derisked before the weekend, and now that no tape bombs hit over the weekend, we are getting the relief rally. This rally should not last long, probably 3 days maximum. Traders don't want to be short ahead of Yellen's first FOMC press conference. If we rally up to ES (June contract) 1860 over the next couple of days, I will look to sell and get short. I will not short US equities, I will short FXI, EEM, or something similar to those ETFs.
The truce till March 21 seems quite short to me, does that mean the firing lines will be back on duty on March 22? The EU and the U.S. starting a cold war with Russia over Crimea seems a bit overboard.
Bottom line is we're no longer in a shorts get blasted at anytime market. It is a two sided market now, and it should be this way for at least another week.
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2 comments:
How do you see going long on Russia equity? Thx
Not interested in Russian equities because of slowing China, not because of Ukraine. I don't want to be long anything right now. Feeling very bearish on China. We are on the cusp of a China financial panic.
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