Performance Index

Tuesday March 23rd, 2010

Inflation: -1 bps
Benchmark: +28 bps
60/40: +37 bps
Doom/Gloom: -137 bps
Old Style Macro: -155 bps

The Old-Style Macro got hit pretty hard:

Clearly the RISK ON environment took over despite the uncertainty on the Healthcare reform, the one divergence being gold which continues to be weak relative to other assets. We see gold as leading indicator so we have some believe in bigger correction today Tuesday after the usual ALWAYS-UP Monday.

(Click on chart for bigger version)

For the day ahead I remain:

Short GBPUSD; EURUSD, equities through options, and long 10 y notes.....

CPI from UK biggest data point today .....

Strategy: Observe the final push higher in stocks and sell into US open - and for Gold and EURUSD, close below 1094 and 1.3500 could explore further downside - main bearish and biggest view remains: GBP in 1.4200 ish and soon.

Winston