UBS still insisting the bounce is intact and to buy the dips so long as sp500 cash stays above 1220 on a closing basis.
Well, we are at 1218 on the sp500 cash now and below this on futures. We are therefore at a key level now which is repeating across currencies and other instruments. They remain bearish on gold on the short term, in spite of the recent moves. These are purely technical comments of course.
As we know, macro events can and often do overwhelm the most clear technical signals. My take is that i wouldn’t chase this recent sell move. If you are net long with hedging shorts i would personally retain some shorts and let price take you out at even, assuming you have the profit to allow this. Better safe than sorry in this respect. I’m running some QM oil shorts at present on this basis. Im not booking the profit im retaining them and will be very happy to see price take me out as im still very much net long and expecting the monetary debasement fueled rally to sustain. Currencies wise im as i was. I’m fairly convinced that the pro risk will not translate into a much higher euro. The dx could gain a little as risk asset markets add weight. A long or long-ish US$, CAD$, SGD, SEK and NOK strategy is probably the way to play this coming period.
Super highly volatile markets.. I don’t know about you but i could do with some peace and quiet for a while to recharge batteries.. alas i’m not so sure things are about to get any calmer. Capital holders stay in fairly liquid assets and get paid to wait for the monetary inflation that seems to be inevitably heading our way.
Luck to all
Rich
(5 votes, average: 5.00 out of 5)
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