As we mentioned this am, the weakness has been pretty dramatic over the past couple weeks, but our tactical market indicators aren’t quite at the level suggesting a more aggressive position. The back and forth action today reinforces that view. We continue to fully believe in our positive core fundamental thesis, and we may be trying to be too cute – but the news flow is impossible to anticipate and therefore it make sense to stay with our indicators and get ready. We also believe the “bond surrogate” trade has run its course and we would lighten up in the defensive sectors for the time being.
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