Current thoughts

Still no positions at this point although I am trying to leg into an November iron condor on the long bond with 126/123 strikes for the puts and 142/145 strikes for the calls. I've been trying to leg into the put side first with the view that bonds are likely to move a bit higher. Alas I may have missed the boat because bonds found a floor at 132 and have not looked back since.

Interesting that the SPX and the VIX both moved higher yesterday. Normally this is a short term bearish signal. Cumulative tick action was mixed last night finishing at minus -6000. Recent action has been fairly bullish with the 70,000 mark hit when the Dow finished up 175 points last Friday.

The current market action to me suggests that the market is pretty much anticipating another round of quantitative easing from the Fed as a floor under the market. We've seen risk appetite go through the roof with small caps and tech leading the equity rally whilst, yield currencies like the AUD hit multiyear highs against the greenback. Gold is also up sharply. Meanwhile bonds have not fallen sharply like you would expect when risk taking is up so that's saying something.

Stay tuned for more.......