I sold out of all except my 2.5% weighted short against the euro. Given my recent lack of volatility, I’m having a terrific morning +27bps. I checked into the morning heavily short banks with FAZ weighted at 22%. Futures had been up more than 100 but soon collapsed after the hot PPI numbers.
Markets always try to bottom in mornings so I have no interest in remaining in this tape and rather do anything else but scalp the moves. I have a few things to do today, so I’ll be busy.
The problem with chasing morning bounces is the market is sick and needs to capitulate. It can happen at any time and I don’t want to be caught long when it happens.
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