Wednesday, June 1, 2011

Demand For Short Term Protection Is Taxing Indices

Bears couldn't have asked for a better day.  What happened today is puzzling to me.  My best guess is that money is not divested.  In fact, more and more of it is invested in equities. What else is also sought, very aggressively, is short term protection for the money that's coming in and the money that's already in. Purchase of that short term protection, nearly all of it via index futures and options, is very taxing on cash indices.  

SGS is still long, but it's flashing "Neutral".

Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.