Seasick

Anybody else getting nauseous watching this volatility?  Actually, anyone who bet on the VIX when it stubbornly remained below 20 most of the year is actually feeling pretty good (we scored with this twice).  Our call for triple indexes has been profitable up and down, more so for some than others as one of our readers has doubled his yearly gains in the last 4 weeks.  But the constant influx of conflicting what ifs has us all cash right now, a strategy that has outperformed the market handily over the last 6 weeks.

European action is at hand, the question is, will it be enough for a rapid bank rebound (STD, BCS, DB), or will it come in trickles and spurts that have short-sellers crushing the DAX and FTSE?  On top of that, OOM options have become very expensive but earnings projections remain absurdly high going forward.  I still think this egg will crack, but as the last 2 years have proven, it may not happen before expiration.