- Nothing has changed. People are still sipping the kool-aid, expecting that a GOP sweep and $2T QE2 blowout. Neither of these things will happen, and that will send the markets down for a much needed correction. Everything is just a little more extended than it was from yesterday’s post.
- The global recovery is still in effect, with Australia & India raising rates today. With so many countries raising interest rates and commodities on an insane rally (cotton hit the highest $ price since the Civil War), the Fed will have to word their statement that much more hawkishly. It will probably be something along the lines of $100b-$200b with ‘more if needed later’.
- Long CYB(Yuan)
- Long EWV (short japan)
- Short XLK
- Long SH (Short $SPX)
- Short COF
Disclosure: Long CYB, Long EWV, Short XLK, Long SH, Short COF