The Thursday Calm

Striking how some days you see all charts in FX, Equities, Commodities conveying the same message: a big move is coming. Credit markets are still paralyzed, people I know in that area of the game are still shocked and nobody wants their bloody paper. Hedgies have been instructed to up the stakes in order to make back (some of) August's pathetic losses. Admittedly, my network in the HF community isn't big but who the hell takes care of risk management in this industry!?

Here's what I don't like: the picture is too perfect right now. Everybody's waiting for the house of cards to fall and as even junior traders know, "the second wave is always bigger". Whatever, a lot of people also say that the next plunge will only lead to a retest of the lows. Never really understood that sort of prediction. It's only a macro trade now and SPX doesn't give a damn about 1375 if we go there again. It'll probably pierce through it with ease.

I Have bought Eurodollars, JPY, CHF and VIX calls today. No details, I regard the basket as an overlay. If the boat starts rockin', I'll clean up, naturally.

"When opportunity comes along, he is afraid to seize it without asking his neighbour’s opinion."

-Richard D. Wyckoff

(don't be that guy...)