4 CHARTS THAT PAINT A FISCAL QUESTION MARK ON THE FOREHEAD OF THE MARKET

Posted By admin on Jan 1, 2013 | 0 comments

I was debating whether to even do a chart review this week given the unpredictability of the events surrounding the Fiscal Cliff. There come certain points, regardless of the analysis, when it is just useless due to overwhelming short-term events. I believe this is one of those points. Nevertheless, I have a streak of many uninterrupted weeks of providing a weekly chart review. I won't let Congress get in the way of that.

This is an extremely confusing place that the market is currently camping in. Numerous crosscurrents abound, as I am about to show. I have started the process of reducing my net exposure a bit. In the process of moving down a 75% long position from 95% long. I have yet to take on a hedge, but may do so upon further weakness. Most likely in TZA.

I'm airing on the side of caution to start the year. Well, that's if you want to call 75% long cautious. Matter of perspective, I suppose.

click chart to enlarge