What’s There To Say?

The market is losing ground fast, which is not to be confused with trading down. The market never trades down, because the color red makes Obama disgruntled. Obama “predators” things that are red, like hot spots in Yemen.

So the market is only green. Sometimes, it ends flat green. Sometimes, it is very green. But it is always green, because green things don’t draw attention.

The Greek CAC trigger is sort of a non-event, in my opinion. The numbers we’re talking here are a pittance, compared to what have been getting thrown around lately. Are you telling me that a miniscule $50 billion in losses is going to derail things?

I didn’t think so.

Of course, if there’s $3 trillion in Greek credit coverage being taken up by counterparties across the planet, then it’s a whole different ballgame. But really now, these clowns have had almost two years to scope out the potential damage of a Greek default. In fact, they’ve had little else on their minds. I just can’t believe this will directly do anything.

That being said, we are way, way, way too high. Prices are unrealistic, compared to the performance of the real world. Things in the U.S. are static; things globally are deteriorating. We may not need so much a real cause to sell, as a real excuse to sell.

So, I remain hedged tight, short oil and energy through ERY and SCO, while staying long AEC, CLP, CCJ, and physical silver.

Have a good weekend, and keep your guard up.