Nothing Done

That was one of the least volatile post FOMC reactions I have ever seen. We did indeed make a high shortly after the decision but one had to squint to see it. Unfortunately, it was not enough to get me a fill on my order. I remain very tightly hedged (likely slightly over hedged) but not meaningfully net short.

The ball is now in the bears court. We are overbought and sentiment is extreme. If the bears are going to make a move it should happen in the coming days. Have a good night.


Anonymous said...

If the bears cant get it done in the next week do you go long??

Tsachy Mishal said...

As long as optimism is as high as it is now I will not go aggressively long. I might lift my hedges and let my modest long positions run.