Correlations closed the week .55, the analysis last week wrong that risk reward favored additional downside.  Now we are in relatively neutral to slightly bullish territory.  If correlations continue to decline we are re-entering a stock picking environment.

The extreme we are seeing this week is once again contango.  2nd percentile, which once again means it is nearly futile to own volatility via ETNs.

Thanks and have a great week.