FINALLY!

The day that I have been waiting for, for so long, finally came today. The big downside wash-out, that has been eluding the markets for over 1 year, arrived. I will not go into major details as I am very short on time. Even more important than the markets -- my son was born this morning. I am extremely grateful that he and his mother are both healthy and happy.

I closed out ALL of my short positions except for my short gold equties position. I sold the short EAFE position very early and then the rest in the last hour as the indices slipped. I made huge profits on the short energy position. We did not exactly get to my 1100 target on SPX but it was close enough. And close is good enough in these situations.

Gold rallied today as fear was very high, but all other commodities have collapsed, and I think it is just a matter of time before it falls. It is now very 'overbought' and deflation fears are rising.

Some one (or some people) managed to forced SPX down 20 points in the last few minutes of trading. Will be interesting to see what happens tomorrow. I see two options: 1) the market open sharply lower but then rallies through the day, closing much higher; 2) the market opens sharply higher, then falls, but today's lows hold. I would be VERY surprised to see the market close lower tomorrow.

For that reason, I went long S&P/TSX and SPX indices near the close today. Even if I am wrong about tomorrow, today was a major day of fear. It's unlikely to last. I see the markets rallying for the next month or two, maybe even longer. In the short-run, the time to be aggressively short is past.

MARKET POSITION: I Have not been able to accurately re-calculate my positions yet, but it should be close to: EQUITIES: Long Cdn S&P/TSX (2 units); long SPX (2 units); short gold sector (1 unit); CASH: (7 units)