Friday 2 September 2011

Everything comes to those who wait

It's too early to say if the markets have changed direction. But last evening there was a signal strong enough for me to sell off almost all my stocks. The US markets failed to breach the 50% retracement level two days running. My sale was a rout, not a dignified retreat. Only in the UK did I come away with a profit. I also whacked up my holdings of short ETFs (SUK2, SDS, DXD). Those moves have paid off handsomely as today has gone on. All this shows one thing: In the present market, I am a bear at heart and I feel less nervous with down moves. However, I have to remind myself that today's price action only moves the markets back into their consolidation patterns.
Long may this last but I must not get overconfident. The bulls are still out there as is shown by the late afternoon price action. (GMT+1 time).
Gold and silver have done me very well today so my judgements here are coming right.
The balance of my portfolio now is 19% gold and silver, 6% equities, 15% short ETFs and 60% cash

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