1. The marginal impact of TACO trade were declining significantly;
2. Most of the trade deal will be done by friday, except China--TACO trade is almost over;
3. SP500 forward earning yield is about 4.444%, yet the short term treaury is about 4.25-4.5%. Investor get very little risk premium by taking 15.69% of annualized volatility (The S&P 500's annualized standard deviation for the last 10 years is approximately 15.69%) .
4. I brought back my risk exposure, but still net long, concentrated in areas which I am comfortable from risk adjusted return perspective.
5. I am not saying market will crash. Just a moving from maximizing return for a given risk to miniming risk for an acceptable return.
6. I will buy Any drop before fed meeting and before the friday .
