Quick Take: Aug. 20, 2010

A quick Friday morning note from the road: the risk asset markets were sold widely on Thursday after yet another set of negative data surprises from unemployment and the Philly Fed. SPX gave up the 50 day, decisively, and on building volume.

Pre-open action in the euro is looking like traders are coming back from the long August holiday and realizing that “the zone” is still the disaster it was before they left.

The US Dollar looks to resume its advance, and bonds remain out there in la-la land. Remember, today is options expiration. It looks to be a stormy one for stocks, so batten down the hatches. I have my long positions hedged with a VIX play.

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