Tuesday, June 14, 2016

Covered Shorts and Looking Long

Covered the equity shorts and am looking to go long before today's close to play for a short term Fed dovish bounce.  Still expect more downside but Yellen will look to soothe the market in this period of market volatility.  She always does.

It looks like we had the Treasury blowoff top in European trade as the Bunds finally went to negative yields.  A coronation of sorts, a landmark festival for NIRP.  Draghi is doing his job.  Printing money, enriching those holding financial assets, while creating no growth which allows him to continue with mo' money mo' money mo' money.  If 1 trillion euros doesn't do the job, let's try 2 trillion.  If that doesn't work, try 3 tril.  etc. etc.  Nowadays 1 billion seems like 1 million back in the 80s.  Money has lost its value.

Those saying the thing to fear is deflation forgot to check the prices of bonds or real estate.  Or college tuition.  Or rents.  Anyway, don't want to get too off topic.   No one cares if you made money riding the backs of central banks creating a huge mess for future generations.  You don't get a medal for fighting the central banks and their policies by shorting stocks or bonds.  You can hate the game, but at the end of the day, beating the game is all that matters.


Anonymous said...

Hey MarketOwl ! Did you enter long yesterday ? Are you still long ? When will you short again ? Many thanks !

Market Owl said...

I am short now. I did play a quick long but it isn't even worth mentioning because it was for small size and too quick of a trade.