Thursday, January 6, 2011

Market Sentiment

Quick post, came across this chart and it pretty much sums up market sentiment.  PIIGS CDS Vs the VIX.  The fear gauge is at a yearly low while sovereign debt risks are blowing out.   There is no protection on positions right now and margin debt is at pre LEH levels.  GOD help anyone who is long, unhedged, leveraged in this market should anything happen that causes more selling than the Fed can match with bids.


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