Archived IMT (2009.02.04)

Fresh recovery in risk appetite, bond yields and the subsequent pullback in the VIX are in line with today's HOTHCHART based on expectations that US data to show slower deterioration. Neither the ISM nor the ADP projected a strong economy, but both reports showed an improvement from their December data, thereby, lending support to the notion of the data becoming less bad i.e. a valid foundation for accumulation of positions in risk trades (equities, metals and higher yielding currencies such as CAD, AUD, NOK all against the JPY and USD). AUDCAD & AUDJPY calls remain valid.