Back to Danger Area

As all regular readers know, outside of my own analysis, I like to read John Mauldin and John Hussmann’s weekly comments, see links section.

John Hussmann has a good article out this week, see here:

http://hussman.net/wmc/wmc120702.htm

The market in the last three days has been above what I call the practical resistance area of 1354 on the S&P.  Our last shorts were put on at 1361 a few weeks ago before the last downturn.  We are bearish at these levels and are looking to sell more this week.

Gold and the dollar are special situations.  We still believe that long dollar is the big trade for the rest of the year and this means short gold is also in play and today we will probably start shorting gold again.