Half Empty

Drawn into the stream
Of undefined illusion
Those diamond dreams
They can't disguise the truth
--Level 42

It's hard not to wonder whether yesterday was an important reversal day--particularly given today's downside follow thru.

Major indexes are also starting to sport a multi-month head-and-shoulders look, with perhaps the right shoulder currently in the process of being traced out.

Consistent w/ this past weekend's musings, I was a seller yesterday and today of most long stock and commodity positions. Remaining long positions are a slug of GLD and a sliver of Microsoft (MSFT). Both of these are for sale on any significant lift.

Thus far, I've been unsuccessful in adding to my short exposure. Haven't found entry points that 'feel' right. Managing short side risk is much more difficult than managing long side exposure--particularly in an environment where you know policymakers will try/are trying everything in their power to prop up prices. It's hard to fully express a bearish view in such an environment.

However, one silver lining of paring longs over the last coupla days is that I'm 'net short' for the first time in a while. As a percentage of total assets, let's call it ~3% net short.

Nothing radical, but at least directionally consistent w/ my view...

position in GLD, MSFT, SPX