We are approaching the start of a holiday weekend (Labor Day in the U.S.) which tends to be bullish for equities as investors are usually in an optimistic mood as they look forward to a three day weekend and what is often a final summer outing for the year. We are also at the center of a timing zone (last week of August - 1st week of September) when there is a high probability for a major reversal in this market. The DOW was up this week when it finally made a new all-time high of 17,154 on Tuesday, but then it closed below it and is now moving lower. Short-term bear signals are appearing in the S&P 500 and NASDAQ charts today and a significant correction is overdue in this market so this appears to be a good setup to sell short. I am going to open short positions in the broad stock market today with a tight stop loss into next week. It is important that this market reverse by the end of next week for this trade to be valid. Otherwise we have to assume that unusually bullish forces (including possible market manipulation - see last Friday's blog) are at play here and distorting normal corrective cycles. Selling the broad stock market short today.
I will update other markets later tonight or tomorrow (no position changes in gold, silver, or oil today).