I confess that yesterday's not-too-surprising announcement from Dubai that everything would be juuuuuuuuust fine had me a bit concerned, but it looks like the damage is here to stay. In particular, I am still madly in love with small-cap shorts. Even as most indexes and commodities are thrusting slightly higher, the small-caps have been reliably weaker. I have doubled my position in SDD, the ultra-bearish small-cap ETF. Below is the IJR, which nicely illustrates the set-up for small caps on the short side.
