Downgrade parade

[Lojanica]

2 quarters of eroding prices. Commodities finally threw the towel in (except gold). Biflation as the Central Bankers worlwide try to engineer a soft landing. Employment stable at very high levels of unproductive or underemployed folks in both the developed and marginally developed countries.

The verbage has been:

Moderate growth
Growth but tepid.
Growth but less than most recoveries.
Sub-par growth.
Risk of contagion lowers our growth prospects.
Risk of Negative growth.
Recession.

Depression.....

Markets do what they will but this one has been levitating oddly at support for a long time. Put the animal down so a phoenix can arise. Word on the streets is there is ton of money laying fallow........

 

[Lojanica]

Many downgrades today. The balloon is deflating. Sssssssssssssssssssssss....

Many funds have biweekly, monthly, quarterly, and yearly opt-in/out dates. These are happening now. EOQ buying is OVER. October is volatile. Europe is struggling. 44 billion in POMO scheduled for October by the Feds----all at the long end of the curve. Curve is flattening and we are sitting on MAJOR SUPPORT.


Kind of like 7th inning with the SD Padres down 5 runs, zero out and the bases are loaded with the count 3 and 2 to Hank Aaron. Wanna go long?

 

[tradingjournals]

You just convinced me to consider ... the long side.

 

[Lojanica]

Quote from tradingjournals:

You just convinced me to consider ... the long side.

Nice run up. We stalled though Pre-market in US. Important because it was a slow unwind. No one wants to hold longs over the weekend. We'll see next 2 -3 weeks if this long holds. Personally I'm loving the volatility. Trading not holding positions.