Up or Down

It is a rare time when I can picture both a melt up and a melt down. The sovereign issues in Europe still lurk and the politicians continue to bicker. At the same time market participants are fighting this rally tooth and nail as we saw another day of heavy put buying today. Market participants are holding low equity weightings and  a move back to normal weightings would lead to a massive rally. I believe the bull case is more plausible because the bear case requires a complete melt down with no response from the EU. That said I am not playing this rally as aggressively as I would like to in case the worst happens. Have a great weekend.

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