I dumped ALL my short index positions this morning when saw chance to get out and still make enough to buy a Starbucks Latte, on that trade in ProShares “SDS.” Glad I still have the shirt on my back.

So, yes, I saw the markets were not headed down so I covered my short positions and ran like a scared rabbit.

I’m now convinced this Fool’s Rally has some real get-up-and-go left in it.

Lets talk about shorting indexes again when we see the S&P500 getting intimate with 1,000, or 1,050

ALL my current positions are LONG, except this morning I did buy a 3% of portfolio position short the 7-10 year treasuries, using the short fixed income ProShares ETF. Laugh, go ahead. I’ve started to nibble, and I’ll keep adding to my short Treasury position over the next six months. PREDICTION: within six months we will see the top of this bubble (low yields) in short-term US Treasuries. 3-month bill rates going NEGATIVE! Gimma a break. You need me to tell you that this is a great opportunity to short a bubble? I hope not.

Today the market is adding more to nice previous gains I have in my 30% of portfolio position in multiple oil stocks, and a 2:1 leveraged bet on crude. Example, I’m up 35% on PBR in FIVE days (thanks to the Chinese falling in love with Brazilian oil after I bought it). I’ll take that as my Christmas gift from Santa. I love that greasy black oil when prices are moving my direction.

I also dumped all my gold positions at $810/ounce this morning. That was a GUESS that this is still NOT the real rally we’ve all been waiting for; gold price is still under the dark hand of deflationary pressures brought by this lovely economic depression.