Unwinding of short position

Posted: October 12, 2015 in Uncategorized

Last week massive rally (specially on resources/energy) has been due to unwinding of massive short positions induced partially from te Fed.

Again nothing has changed and until SP500 .2130this technically is a bear market rally.

What could spook the market?

The 4 largest issues

China, if the bear rally falters (the A shares have an ultimate target of 2400/2600).

Volkswagen if the ECB and the European Investment Bank find that they have to retrieve their bond purchase/investment loan due to the non compliancy of vw behaviour.

US  corporate profit falling (Alcoa, the first to release, released estimates and missed…-6.81%)

A Nato/Russia clash over Syria probably due to an accidental shoot out.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s