Downside up, upside down
Take my weight from the ground
Falling deep in the sky
Slipping into the unknown
All the strangers look like family
All the family looks so strange
The only constant I am sure of
Is this accelerating rate of change...... Peter Gabriel- Downside Up
Longtime readers and followers know I have a few "studies" that I did in the 90's that I like to help guide me in trading. One of my all time top 5 with a bullet is the difficulty of SP contracts to fall in the rollover process. The big test for this observation came after zirp put the second contract in a carry position to the expiry. Borrowing all the creative capacity of the 500 largest industrial companies (less the div) for free was something futures traders never did prior to the crisis..And yet, the force of structural "falling up" became even stronger.
Thus, as others felt compelled to cheer the EOTW last week and some spit vitriol on the Central Bank (somehow too easy when the $ falls and too tight when it rises)- we warned of an impending rally. No "rip your face off" short covering (ever notice how its always someone else's face?), no hate for another's misfortune, as predicted the market fell up. The only constant I am sure of is the accelerating rate of change.