Important Decision Point
For me the period since February 3, 2012 has been a bit perplexing. In January we sold out our long stock positions in the S&P 1290 area and started getting short and kept shorting all the way through the top at 1422 and on the way down. All in all it has worked well, partially due to the short gold position. Our Marketocracy tracking portfolio is up over 12 percent for the past six months and over 200 percent for the past year. On the other hand it has been a period when the exuberance on the other side of the trade has been hard for me to relate to.
As such this morning we are going totally flat, while we will be over 65 percent invested, long positions will equal short positions in both stocks and precious metals after the opening today. For me to get back into fully short positions, we were leveraged at 1.9 to one on the short side at one point, I have to see a close below 1333 on the S&P for stock positions and 1563 on gold for precious metal positions, or see a rally on either that stalls.