market news

May retail numbers came in at double analyst expectations. The market responded positively; bonds and stocks were up. I would have expected a further decline in bonds as any good economic news raises the prospect of higher rates. Maybe they're already priced in. Or maybe the market is more worried about inflation than higher rates and is willing to accept higher rates if it won't hurt the economy.

In the meantime, I will sit on my hedge and limit my upside for downside protection.

In currencies, I am long NZD/USD. I went to full leverage today, after the dollar jumped against everything else and the NZD kept up. It's recent strength against the dollar should attract more inflows, especially since it's absolutely killing the Yen. The carry traders should be emboldened considerably.