All Talk

Expectations were running high this week, that the central bankers would produce the big bazooka's promised in various preceding speeches. In actuality it was just more empty promises, that the market was not convinced about until an abrupt turn of sentiment on Friday, leading to a very unexpected gain for the week. We suspect there may be an unreported story here concerning the Knight trading software fiasco and an effort to flood the market with short term liquidity to avert any panic.  However, events last week have effectively changed nothing and we continue to hold our short position and strategy from last week, excepting that we will not add to our short position above 1400 and our target price this week is 1342.