The market continues to offer opportunities to increase my short position. After a hard and fast rally last week, the market seems to be weakening again. No surprise, given the events in the credit markets these days. A growing number of people are starting to say that a recession may be just around the corner. Housing, employment, consumer confidence, profits are all weakening. And the market is only 6% off its highs! A testament to human optimism and trend following.
I think by the middle of next year, now will be seen as an incredible opportunity to go short. Last week's oversold condition has been rectified, and the market is ready to start declining again. So I am taking this opportunity to increase my short position by two more units. I was hoping to be able to do it closer to 1500 on the SPX, but I am not sure we are going to get there with all the negativity these days.
MARKET POSITION: EQUITIES - SHORT (9 units); GOLD - LONG (1 unit)
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