What Did I Say?

I believe it was something like..."The market remains uncomfortably close to the edge of a cliff. Sooner or later it goes over."

Apparently it was "sooner". The absolute panic low set in January on the DOW has been convincingly violated. Obviously dip-buying is no longer a viable strategy. Instead you want to sell rallies.

I am less than optimally positioned for this move having gotten smaller ahead of the Fed. Although I did put on a big fat IWM short position yesterday afternoon. I added some SRS this morning in addition to a few shorts. I'm not getting too aggressive in chasing anything here. We are in a bear market and that's not going to change anytime soon. There will be plenty of time to take advantage of the incredible pain that lies directly ahead.

From the long side I see very little to get excited about. The metals are the exception. Gold and silver are extremely close to breaking out and de-balling the shorts. I am cautiously adding more GLD in anticipation of the breakout and when it happens I'll be buying with both hands.