Given the market mayhem, I thought some folks might be interested to hear what I’ve been doing this morning. Before I begin, I’ll mention that at least one person misunderstand from my last post that I “only” had 28 positions. In fact, I had 106 positions (all short, naturally). I was merely showing those with the largest pre-market drops. Anyway…………..
- I have trimmed from 106 shorts to 75;
- The 75 I kept have relatively loose stops, to take into account the prospect of central bankers getting cute;
- I got out of all my ETFs, largely out of caution because of the aforementioned
pud-yankerscentral bankers; - I have dropped my exposure from about 150% to about 90%;
- The charts are still dynamite in their formation, and I think bulls are going to be drinking large mugs of disappointment brew all year long, which should give them a small taste of what it was like being a bear from 2009 to 2014;
- I firmly believe that all rallies in 2016 should be sold, until such time as we reach 1577 on the S&P 500 cash index.
Thus spoke Zarathustra.
