We’ve been long cash now for a good solid month and a half at this point, and for those following our calls you received a 9% return this summer plus the rising value of your cash, as the US Dollar index is up some 5% or so since we jumped out of our shorts (way too early mind you) and even though we stayed short and told others to stay short, for the mode we went to cash because we wanted to lock in some gains from our profitable 7/7/2011 short signal. At this point I am considering issuing another short call but because I need technical as well as fundamental confirmation, I am currently fine with greenbacks (which coincidentally are up $.54 right now to $77.60 or so)… The Euro is in big trouble and a weak Euro will hurt our exports and also our earnings in emerging and mature markets overseas. Inevitably, the overall market is tied to the strength of the banking sector and right now that sector doesn’t look very strong.
Hedgephone has a bunch of fundamental articles coming out through SA tomorrow, so stay tuned for some better drill down on stocks. Remember, for now cash (and gold, Sterling, Franc, Thai Bhat, Rupee, Kronor, Aussie Dollar, Silver, and fancy diamonds) is still king.