Tuesday, 7 February 2012

The Death of Market Volume

 
The market in its current state - grinding higher on lower and lower volume - feels exactly like a very tightly wound spring, where each additional turn takes double the amount of effort and takes just one slip to unleash.
 
We exited our S&P short (at a slight profit), favouring a European index short in the future as the decouping trend remains defiant and we will see more downside on the CAC for example.
 
Gold is appreciating in USD and USD is appreciating in Yen - an odd state of affairs but we're not complaining!
 
Our key 2012 trade has always been long XAU/JPY and this is seems to be coming round after a week or so of melancholic action.
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