Wall Street closed for Labor Day yet still the market dip continues. The FTSE lost 189 points a 3.7% fall to touch its support line (see chart). The reason? You only need to look at the Dow Jones Index futures market. It is down 245 points following its 255 fall on Friday. That brings us down to 11000. It's below its current support line. Tomorrow will be very interesting. If there is no sign of strength when Wall Street opens, it means the bulls are in retreat, a sign that we are due for the next leg of the market collapse. But we're still 400 points away from the previous market bottom and renewed support. At the current rate, another two days of trading.
This morning I sold the very last of my equities.On Friday night I sold SI on the US market and this morning NESN on the Swiss market. I'm beginning to wish I had bought more shorts. But would I be too late if I bought now? I baulked this morning when I had a chance and the FTSE was down a mere 88 points. Will I have more courage tomorrow? The balance of my portfolio is now 20% precious metals, 15% short ETFs and 65% cash. A strong position which is generating reasonable gains.
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