Basically, this means we are moving from short the market to cash. The reason for the switch is technical in nature and also because we want to lock in solid 3-4% or so gains since the Model switched to short the afternoon of July 5th. We’ll take the gains and sit on the sidelines because we want our readers to appreciate solid risk adjusted gains without risking investor portfolios in the event of an unforeseen Bernankification of the U.S. stock market tape. Dr. Bernankenstein’s stock market creation lives, but it looks to me like it’s not that long for this world at current valuations. We suggest sitting this one out and enjoying a Stephen King novel instead of losing your recent earnings from the short side of the tape if and when QEXXXXXXX is announced and the market roars ahead on a falling U.S. (and all other paper currency nations) Greenback.
Hedgephone Market Model Switches to Neutral
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bernankenstein, Dr bernanke, IWM, July 5th, market model, QQQ, SPY, Stock Tape, Ticker Tape
