GA Now Fitted with Most Advanced 'Sonar'
...new improved grounding index 44/25
The GA is a huge ship and as such needs two salts taking the soundings one on the port side the other the starboard.
The rocks found on either side are of two varieties: asset deflation (falling stock prices) and real deflation (falling CPI).
Going into the open tomorrow the readings are: +44 asset deflation and +25 price deflation for an overall deflation reading of +69.
Deflation readings make FXY/UUP the currencies of choice, while inflation readings make FXB/FXA the currencies of choice.
As mentioned the hole of the GA is full (30%) of risk-off deflationary loving UUP/FXY.
These readings also favor TLT over SLV...but SLV over global equities, since the price deflation sounding is less than the asset deflation reading.
As it stands today SLV has entered buy territory but TLT has not.
I stand ready to buy up to 30% the combination of both.
What I'm really looking forward to buying is global equity index shorts. The choice is between EFZ, DOG, and PSQ. Today none merit purchase but EFZ is very close. I stand ready to buy 30% of the combination of all three.
Pos. vol is the easy one. 1% when one month VIX is in backwardation and 2% when 7-4 moves into backwardation.
Eight percent will be the minimum cash held, although today cash totals 68.5%.
AI
