HEADWINDS

I know many of you are sucking the markets dick right now. Do yourself a favor and consider the following headwinds.

1. The country of India has passed law that demands publicly traded companies issue float of at least 25% of shares outstanding, by year end. That means more than $50 billion in share sales.

2. BP fucked the planet.

3. Austerity measures around the globe will inevitably expedite the process of financial Armageddon—1930’s style sans Hitler.

4. European banks need to raise more capital.

5. U.S. budget deficit to GDP, ahead of the mass Exodus of the baby boomer generation from the work force to the oiled beaches of Florida, are at historical highs and are unsustainable.

6. U.S. unemployment is fucked.

7. Major investment tax hikes go into effect 1/1/2011, for divvies and long term cap gains.

8. State budgets are out of control fucked, which will lead to another Federal bailout. It certainly doesn’t help when states like Mississippi, who derive 50% of revenue from tourism, have been “tar-balled” by BP—are unable to do anything else, aside from BBQ pigs and show off their pretty beaches. They’re especially fucked.

I can go on and on forever. However, on a Friday afternoon, with the sun shining strong outside, I am opting to avoid “zero-hedging” myself into a pigeon hole of burlap fantasy. All of that macro shit takes a back seat to real time market action. Like it or not, at the moment, the market is bullish on equities. Nevertheless, I cannot help but notice canaries in my coal mine, like the pervasive weakness in X or the incessant strength in GLD.

Until something changes, for better of for worse, I will remain hedged, currently 61% long, 24% cash, 15% VXX/TZA

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