I just re-entered all of my short positions in the home-builders and lenders (whatever I covered before). I think we are at a time in history, where everything comes together, and if one ever wanted to short anything that’s gonna be it. Is tomorrow the proverbial top for many years to come? Maybe I am wrong, and we have another rally between here and year end, and the Dow makes new highs. But after a relentless rally of 10% on the Nasdaq, in the face of worsening news, real-estate roll-over, quarter end mark-ups, start of earnings season, absurd valuations, cracks in hedge-funds and derivatives,… I believe this could be the end of the counter-trend rally.
I don’t want to recommend anything here, but just stating what I do. Should you decide to short any stocks yourself I urge you to read my primer about shorting.
