This morning central banks around the world announced coordinated measures to enhance global financial system liquidity. Coordinated measures like this imply that central bankers see something severely wrong with the global financial system.
Their perceptions of systemic probs are correct, although as usual they are behind the curve.
Unfortunately, the planned approach--i.e., 'more liquidity'--does little to remedy the underlying problem, which is one of insolvency.
Nonetheless, the news jacked markets around the world. Domestic stock markets have opened about 2% higher. Gold jumped $30 on the money printing spectre.
My inclination is to 'fade' (read: sell) this news and will be looking for an opportunity to add to short side exposure.
position in SPX, gold
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