As I indicated yesterday,  the markets may try to rally here.  Gold is close to breaking a downtrend line which is why the dealers squashed it over night.  We are still nearer the top of the stock market trading range.  So all in all there should be an attempt to push up.  It may succeed but the odds still favor a drop so it is worth staying with the short positions. 

All closed a little better today but that doesn't mean they won't close badly tomorrow.  Still holding all positions.

A few weeks ago we made a good profit by being short the Euro.  We took a profit because the COT indicators showed a large speculative short position.  Since then the Euro has rallied strongly and many of the Euro short traders have had to cover.  I will be buying EUO today ( short Euro) and am looking for the Euro to drop down significantly next week.

There seems to be no good news anywhere,  Europe has't corrected its problems.  Business here (unless you are Google) on the basic levels seems to have slowed even further.  We are about to enter another high tension political confrontational time.  The mobs are loose in the parks and cities ( it is Washington they need to go after as well as the bankers) .... BUT the stock market keeps going up.  This could be a repeat of 2009 when the Plunge Protection Team bid up stocks for six months but we are at the top of a trading range and the risk is still to the downside.  I am going to be putting on short positions with a stop a little above the market.  This is the type of trade that risks losing  a little and making a lot very suddenly.  A number of chartists talk about 1220 as an important pivot point on the S & P so the PPT may try to push it through that point to trigger buy stops and fake everyone out.  So for me shorts in this area and up to 1230 on the S & P is a calculated risk.  Next week if we trade above 1230 I will cover shorts.  This trade may not make money but on an odds basis it is a perfect point to take a position.

I am still stabbing on the short side by buying small quantities of ZSL and TZA with close stops.

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