UBS situation, recent rally, link…..

Posted on 09/15/2011

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Matt Taibbi’s blog today is excellent…….. perhaps you’ve already seen it, but if you haven’t, it’s worth a read.

http://www.rollingstone.com/politics/blogs/taibblog/the-2-billion-ubs-incident-rogue-trader-my-ass-20110915

Briefly…..the “all clear rally” we’re seeing with another half-hearted, but globally coordinated central banker led bailout/short squeeze rally (in my opinion) will not last much longer. From midday Monday Chicago time when the S&Ps were ~1135 to midday yesterday we saw a 5% rally. Failed at the key 1205/1210 level.  We’re retesting that same level as I write. Perhaps we break it…..but I doubt there is a whole lot more conviction on the upside.

If the cash VIX flirts with 30/31 again (currently 32.65) I would look to HEDGE long positions or speculate with some strategic shorts (or long vol plays).

I”ll finish “The Perfect Storm” later today or tomorrow.

 

Trade well (knowing this ain’t over and Europe is NOT fixed).

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