Poised for a Correction

Over the past couple of weeks equity markets have stood up against the gods, shrugging the heightened EZ crisis and continued disappointments in global macro prints. The market seems poised for disappointment in our view as the recent price actions seem to have more than reflected our views on the latest global easing cycle. As we’ve recommended in our recent cross asset monthly this rally should be used as an opportunity to sell. The market’s latest optimism defies our expectations and the correction might be sooner and more severe than we previously thought.    QE or not, it’s going down.