I am getting a little antsy over the speed of this ascent. The S&P 500 is now up 9% in a little over 2 trading days. The biggest positive is that few are properly positioned for this.

The S&P 500 (incl. dividends) is down a little over 5% for the year. The average hedge fund is down 7% to 8% depending on which hedge fund index you look at. If the S&P 500 gets closer to break even its unlikely hedge funds will catch up because they are largely risk off. This would cause  a lot of anxiety. In addition, people start looking for a year end rally towards the end of October which is not that far away.

On the negative side the market has had a steep climb and sovereign spreads are blowing out again today in Europe. I am considering writing covered calls against partial positions.

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