Very net-short the market after today’s trendline breakdown on huge volume. The reversal may be at hand and my portfolio is positioned for it. The two forex trades I posted about and delved into this week are both up over 10%, as the dollar gains ground and risk assets sell off. Not a lot to cover at this point, except for all of the failed note offerings, equity secondaries, and HY IPOs that are shortly to come, if this indeed the line in the sand.

A ban on prop trading was enough to crater markets on huge volume. So what exactly was running the markets up? Organic GDP growth? A return to solvency and fiscal prudency? Or an influx of liquidity, zero borrowing costs, and wide spreads just itching to be faded? The charts seem to agree with the selloff thesis.


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