Tuesday, August 21, 2012

TAQK Update...8.21.12

We're continuing to see some pullback as bonds weaken.  These situations have previously produced great buying opportunities so I'm keeping a close watch on the short term equity/bond dynamics. and the SpreadX/TrendX chart.

The S&P 500 high a 4 year high today although it appears to be a fragile situation based on the intraday action of the VIX, which can jump several % in a few minutes. The game could go either way right now so the safety of our market neutral model is still a solid bet and risk management remains Job #1..

I mentioned last week that TLT could see 119.5 (currently 121) and our hesitation in buying the TLT setup on the 16th when it first hit 121 turns out to have been a wise move.