I'm rather surprised that I am so bearish these days. This recent run from the Fed easing has had declining volume, and is looking increasingly like a rising wedge in a falling market. I have a couple of stocks I'm looking at on the long side, but I'm primarily short, and very comfortable. However, given the easing bias, I am quick to cover the shorts, and thinking about going to a 50-50 dip-buying peak-shorting bias, rather than my current 70-30. Oil is still rising, and the US dollar looks like a flag in a downtrend. If not a time to short, this, in my opinion, is at least a time to be very very careful. Attached is my markup of recent COMP events (drawn sometime last week, not totally current, but still valid).
Cheers,
Simon.
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