It looks like the "fiscal cliff" jitters are keeping the stock market down but not causing it to break down (at least not yet). Some bearish sell signals are just starting to appear in the NASDAQ but not yet in the DOW or S&P 500 indices. We will therefore continue to stand aside the broad stock market today and wait for a stronger sell (or buy) signal in the new year.
We are maintaining our short positions in gold for now but are still standing aside silver as there is some ambiguity in the precious metal markets at this time. (All of the markets may very well be waiting until after the new year to make any decisive moves).
Crude oil is also looking very ambiguous right now with mixed bullish and bearish signals, so we continue to stand aside this market.
The Swiss Franc has been very bullish over the last several weeks but is due for a major correction soon. Our strategy here will be to stay out of this currency for now and wait for the correction. (Note that we do not trade this market short-term - see Alternative Investor Strategy page.)
Wishing a Happy NEW YEAR to all the blog readers!