SPX Target Reached... Selling 1/2 Of The Position Around Here

My March target for the SPX was reached today. I am selling 1/2 the position around these levels -- 1,310 in Jun06 futures, as I think the market might overshoot a little bit on the upside, but then again, it might not... Also, let's not forget it's expiry week and weird things can (and probably will) happen. It would seem the market likes lower yields and the slight possibility that the Fed may soon be done with raising rates (which isn't true, but hey, who am I to go against the inexorable trend). So I take profits and run, but mind my words: we are soooo close to a 10% correction in the U.S. (and Europe) that it's not even funny any longer. The market has forgotten all about fear and complacency (together with the M&A bonanza) rules for now.

I am off to Paris for the EuroHedge conference this Wednesday and Thursday, where I will be one of the global macro speakers on a panel chaired by ex-Goldman's Gavyn Davies. Back on Friday. Sell on strength (if you are long) and just watch on the sidelines if you are not! And yeah, if you are a $ bull, you might want to consider looking for a safe place to hide...