Alm 2010

The VIX (volatility index) is down since friday close from 29 to 23. Thats a rather big move and shows us that market participants are turning less nervous. If anybody did take the oppurtunity of selling volatility last week it is rather okey to take nice profits now. I still think that a covered call strategy makes sense but of course it yields less now. One market stands out for the day, week and year. The Chinese mainland market. In Shanghai they trade their stocks at fresh all time highs and up more than 80 % on the year. What puzzles me is that nobody seems to take notice. I think the underlying strength in corporate profits and the "potential" that China represents for the corporate world will take us out of this credit mess stronger than we were before. Darwin rules so good becomes better and bad disappears.

Market data: (change compared to17 August)

10 year treasury yield 4.62 % (-0.05)

Swedish OMX (+2.7 %)

FTSE (+2 %)

DOW (1.1 %)

NASDAQ (+1.9 %)

NIKKEI 225 (+4 %)

SHANGHAI SSE COMP. (+7 %)

Actually a nice reading if you are bullish.