Oct
23
2009

  Short Every Market

Once again, the sell signals have been reaching their completion in nearly every market. I just took profits in gold, and I don't have any left. Hopefully this IS the end of the gold rally, but all my signals show exhaustion, so I've just got to trust that and go with it. I do plan to get back into gold as fast as I can on a pullback/correction.

Throughout this week I've been buying the short ETFs. I'm short Nasdaq, the S&P 500, China, and emerging markets. Today I shorted the Dow. I've got stops set on everything, in case the indexes bounce off their resistance and start rising AGAIN. But I'll just keep on shorting each time the next leg up ends until the correction happens.

I'm not necessarily going to hold these ETFs long-term, since the rally might get another leg up after the correction, and I don't intend to be short for that. I would like to try to catch that leg if it sets up properly.

I've been spending more than the usual 2 hours per day trading-- I've also watched the tape as much as I can during William's afternoon nap. The market's advance is slowing, it remains to be seen whether it's just taking a breather or if it's going to correct, but it needs to be watched.