The last couple of trading sessions is atypical of what we saw in the last couple of months. Volatility totally subsided and we are trading in a range. This suggests that the market is gearing up for something. Most likely traders are waiting for the Friday inflation print. I think it's prudent to keep hedges on; if inflation comes in significantly under drop the hedges other wise keep them on and sell into weakness if the inflation print comes in high.
I think inflation comes in high; higher energy prices, higher food prices, houses/rents still rising (albeit slower - still seeing +16% yoy). Inflation has not peaked imo.
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Trade has been working out - inflation comes in higher and markets continue their sell off. Will look for the market to either bounce of the lows (support) before reduce positions but will probably hold through as it goes lower (breaks support).