Cover all equity shorts (SP 500: 940 or whatever it opens at today) (a little too late), and oil (at 61.50) and reenter under further overbought conditions. This rally can last one month more. Staying with fixed-income trades... since I believe the bond market is more sane than the stock market. Close small AUD position (no gain at all)

Key theme: The fall will happen during the fall.

My own technical analysis did not pick up an oversold signal when the S&P was at 880. I expected it to fall further: there was no surge in volume indicating a panic; the RSI bottomed at 37.6; VIX "only" peaked at 31.3; MACD did not show significant divergence.


+ PBR 5

- copper 5
+ silver 20

+ German government bond 10 year 100
+ US Treasuries 10 year 70

- EUR/SEK 30
- EUR/USD 30
- GBP/USD 60



Tentative positions:

+ USD/JPY
+ USD/AUD

planning to add to copper short.