The featured image above shows the view we found upon our arrival mid last week, but in the interim cloudy weather has moved in turning the horizon into one giant white reflector. Quite frankly I’m actually not a big fan of neither the beach nor the ocean. I just don’t get the point of aging your skin with damaging UV levels whilst constantly picking sand out of every orifice. And having been raised in the Austrian highlands I’ll take an alpine excursion over a day at the beach any day. Before you get your hopes up – all incriminating photos of me wearing Lederhosen as a young child have long been destroyed.
I am starting to slow down my trading activities a little as I’m busy preparing for a trip down to the Costa Blanca here in Spain. In case you missed some of my lamentations from previous years: The beginning of March marks the launch of Las Fallas, which slowly metamorphoses the city of Valencia from a quiet secondary Spanish enclave into the veritable Sodom and Gomorrha of Europe.
Not a bad start of the week as the E-Mini long campaign I took out last Friday, courtesy of our trusted Zero indicator, appears to have survived the weekend. Of course equity bulls are far from being out of the woods yet as it’s not the dead cat bounce that matters but the ensuing follow up. So color me cautiously optimistic for now. However once the opening bell tolls it’s time for more aggressive bidding to arrive lest things may take another (rapid) turn southward.
Markets never move in a straight line and the 12% correction in the S&P 500 in late January sent an IV shockwave through the financial system from which it is still attempting to recover. What usually follows a large volatility event is a counter reaction followed again by smaller events until either the old market regime re-asserts itself or something even more dire happens.