Early this morning:
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Not so great!
That shouldn't come as a huge surprise, since I was short. The good news is that the very thing that I've been griping about so much – – – my refusal to overly-expose myself in this market – – – is what is saving me today. I came into the day 70% in cash (the rest in small shorts), thus I am down 1.38% as of this writing, in the face of a Dow that has been up almost 500 points.
So, as bad days goes, this one is quite survivable.
Yesterday we suggested that the investors should not underestimate the power of the central bankers and politicians. We also said that the Pavlovian dogs like Zero Hedge or Mish will have to wait longer for the collapse of the world.
Yesterday turned out to be a consolidation day and ES retraced back to 1183 overnight. Since then it has bounced to slightly over yesterday's overnight high on some mildly bullish news about Chinese reserve requirements. The article about that on Bloomberg is here, and is interesting as it's the first reference I've seen to government 'fine-tuning' in a while. That's a phrase that has grown rare in recent years as central banks have graduated from using fiscal tweezers to fiscal cannon to try and move economies.