Mike, welcome to cash land. As you know, I kind of did the same thing about three weeks ago, shorting a bunch of stuff against my portfolio. Those shorts just broke back above water for me in a big way today, with the internets and Citigroup getting hammered. All its going to take is a few more days like today to make that move worth my while. In my mother's accounts, I have raised about 15% more cash in the last two weeks. Last week looking at new highs in the market after the rate hike, I just could not believe what I was seeing. I still maintain what I said a month ago when I started shorting. I consider it highly likely that something bad is about to happen, and if it happens it will happen before the end of the year. Probably before the end of October. If you are ever going to market time, you've got to be thinking about it now.
If you haven't read Greenspan's Friday speech yet in its entirety, go find it on the Federal Reserve web site. It is a keeper, and parts of it are just chilling if you keep in mind how careful he is with words. Read between the lines, and there is no doubt what he is saying.
JJC |
