Well, QE jawbone week is living up to its billing isn’t it? I went out for a run with everything very green and came back to hard downside reversals.
The downward reversal in the stock market is impressive and the precious metals are flying around all over the place.
I am taking the model portfolio to nearly 100% cash until I get a better handle on things. Usually, markets don’t just reverse on inflammatory news, but given the current view on the market’s risky sentiment backdrop, it does not take much to put me in cash and waiting mode.
The speculation portfolio is 73% cash with the balance deployed in quality gold and silver stocks.
My patience is limited, but thus far the HUI limps onward with its bottoming attempt (for a counter trend rally at the least). A closing print below 253 would be a negative hint for HUI.
I want to let things settle for a moment before deciding what to do next on the stock market. I have some puts, but also want to add short. The problem is, again, that these inflammatory events usually prove not be anything but an interruption. I want to evaluate whether or not it may be a kickoff to something before shorting. Hence, cash cash cash!