Curiouser And Curiouser

Alice isn’t the only one seeing things look different after yesterdays market ride.  Alice in Wonderland CuriouserOverseas markets, it seems, were also uncertain how to interpret yesterdays price action as ES_F overnight traded between $1078-1072 as it did just prior to yesterdays close.  The USD was up substantially overnight [being sold off now BMO] but one must wonder *if* Galleon Group is truly being unwound, what a substantial short position they must’ve had in the USD and how much short covering will take place here. 

Looking through my telescope last night, I am now net short in my aDRV 10.22.09ccount but very cautious with stops in place as the irration exuberance we’ve experienced could return at any given moment – or markets could just decide to take some off the table as they should and position themselves for an end-of-year run.  That’s what I would do.  Financials were definitely weak yesterday before Dick Bove decided to downgrade WFC and fear sprange back into the VIX and inverse ETFs.  REITs are looking shakey here.  URE VNQWABC 10.22.09 and DRV [inverse real estate shown right] gave me a buy signal with a target of $25 but you know we can never depend on those inverse ETFs so take great care.  Nonetheless, I will not be adding any longs at this point in time unless  it’s an inverse but shorts in financials such as WABC to the right and REITs are a definite possibility.

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