Here's Benny!

The pain has temporarily moved from Spain to those that have been caught short as the squeeze continues unabated.
Times like this are a true test of a trader's/money manager's metal. Do you, beyond all evidence (short term) to the contrary, stick to your guns, abide by your stops and levels and wait for the market to resume it’s natural course? Or do you bottle it and run, joining the throngs of many that are now wearing pain already as a result of crystallizing their losses?

Personally, I’m sticking to my guns and will look deep within for those elements of self belief that times like this call for.

As alluded to yesterday, nothing has changed in a global macro view. The market is now simply running scared and as a direct function of the monumental size of positions gathered up during the recent risk aversion (end of the world) phase, is overreacting the other way. Fear and panic in its truest essence delivered by flashing numbers across our screens.

With Spanish auction results out of the way and a slightly better UK PMI this morning, the market sits waiting for the BoE at lunchtime and, even more importantly, on hands until big bad Ben steps up to have a chat with Congress this afternoon. Will he or won’t he? Simple really, how will he spin the state of the economy as seen through the eyes of the FED and dare he even contemplate mentioning anything to do with further monetary policy intentions?

Thinking about how the market is positioned and what he may or may not say reminded me of this video clip.

As far as levels and a view for the overall market positioning at the moment, please refer to my piece yesterday. All of which still hold true today and likely so into the end of the week. Then again, Ben may have something entirely different in mind for us.

Helmets on folks, as this is going to be a rather long day.