Countdown To Ill-Leveraged Pig Roast ~ The Risk Averse Alert

Friday, December 09, 2011

Countdown To Ill-Leveraged Pig Roast

With next week's options expiration finding a well-hedged short equity interest here at the conclusion of this week's hyperinflationary bailout fail courtesy of the EU, there's a good chance this year's pigs will be taken out and shot...

XLF weekly

The final two weeks of 2011 follow next week's options and futures expiration. These probably will see typical, muted activity on account of Christmas and New Years holidays. So, any significant portfolio positioning going into year end is likely to occur during December expiration week. The victims of those hyperinflationary bailout scrooges in Europe — financials — particularly appear technically well-poised for pain.

No Santa Claus rally for Grinch should be bad news for Whoville, as well...


If there's no trans-Atlantic consensus to hyperinflate credit, then widening attacks on vulnerable debtors seems a cinch. All else appears posturing venturing to legitimize theft of future wealth for the sake of momentarily supporting yesterday's unsustainable beast, now today's burden, its offspring. How does the political climate not become explosive, near-term?

Year end funny business leaving some major bank exposed and bringing the next Alan Schwartz to a mainstream audience sometime early next year seems a reasonable outlook. European credit downgrades loom. The upcoming period beginning with next week's options and futures expiration and running through late-January 2012 could be a rout.

Fast Money
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