Posted by: jhamon | July 15, 2009

MysteryHedgie: Here Comes The Summer Rally!

MysteryHedgie says the summer rally is on:

Corporations’ willingness in the past few days to speak less than apocalyptically about the future (there will be a 2010 and even a  2011!) is significant.  It has turned an “options led short squeeze” into the real thing, the beloved “summer rally”.  Although equities (expect new highs in the next several weeks) are the preferred means of expressing the view, high correlation means rallies in items such as silver, wheat, $A,  and bond yields can be played.  Options are very cheap and probably getting cheaper, but provide good upside leverage with limited loss potential.  Low volumes, Iran, Swine flu and high unemployment are all still issues, but issues that will be ignored for the time being.  Last week’s glass half empty is now half full and ready to drink.                              

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Responses

  1. Hmmm…now take the or not back…please!

    My actual comment is that this society sucks more than our economy and the latter won’t change until we fix the first!:)

    Peace & God Bless!
    “No Ordinary Jane!”


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