surprised?

L: 54% S:32% G: 86% N: 22% ~ $D -14% $G 124% $V 1% $P 1%

This appears to be a very slow end to the month this week to the Raven, with little in terms of corporate news flow thats been that interesting, but more importantly little market reaction to old news stories. The results of the stress test appear more interesting, given that Citi and BoA are going to need more capital. Now this isn't really that much of a surprise given where their stocks are trading, but its definitely not positive news as its not entirely clear how much, or where they are going to find this capital.

The market appears to have had a magnet placed under 860 in the SPX and the Raven is reluctant to do anything other than churn his portfolio around intraday to try and clip some returns. Vol will continue to grind lower and the Raven is looking forward to picking up some more downside options, how he loves to pay those theta bills as the market grinds higher. Its interesting to think about how much spare capacity there now is in the system and how much of a lid this will keep on inflation in the coming years. The Raven is keeping a close eye on gold as a potential short, as well as monitoring this interesting technical area in the EUR.