Covering S&P short at 2666.  Will revisit.

Update:  Put on the short based on shutdown negotiations going sideways.   POTUS just caved in spite of tough talk.  The government won’t be shut down again.  Time to move on.

Next up China negotiations.  We expect, at best, a token deal as China won’t cave on technology issues.  Trump, much weakened over the shutdown battle, will have to cave again.   Probably enough to get market lathered up.

The market also lathered up over WSJ piece on Fed balance sheet.   So much ignorance on this issue, including basic data.  See our post here.

Upshot:  Stocks are bid. Shorts aren’t working.