Days like last Thursday and Friday can be intoxicating, but it's important to step back and take a look at the bigger picture. For myself, as I mentioned Friday, I scaled back on my largest shorts, went long precious metals (which I closed earlier this morning), and am currently mostly in a bunch of short positions plus a handful of oversized long positions (DIA, DIG, DBC…….again) to balance things out.
What I'm anticipating is, thanks to the trifecta of news Wednesday (State of the Union, the Jesus Tablet, and FOMC) a potential bounce to, oh, about 1125 or so. Should something approximating this transpire, I am going to change from a Bear/Bull hybrid to a Pig/Bear hybrid.
