Volatility

Everyone is calling for high volatility as we go into the end of the month (more importantly end of the quarter). I guess I subscribe to this. Although merely predicting volatility is like saying...."It aint going to be boring.".

Where are we going when it comes to price? That's a much harder question. Our tell has stalled at 3.87 on the 10 year. This seems to suggest that the market will lack upside momentum today unless the late day traders get involved. The common wisdom is that large institutional traders run the last hours of the trading day. Given that these hours have been weak throughout this latest run, I think we may get a vacuum and see some significant selling today.

I view this as good. Right now I'm trying to game my way into PWI for the 12% yield it is sporting. Although yesterday the suckers came in and bought it up to 20 from 18.75 after some dope on Fox recommended it. I'm patiently waiting for some weak hands to dump it back to the low 19s. Then I'm going to load up for my fixed income PF.

Other than that, I'm on hold, hoping for a downdraft. I really need to cram some more dollars into this market because overall I feel we are going higher. Whether we play this volatility will be largely a function of whether the PF gives up some 15% or north gains.