At the tipping point…

Posted on Jun 04, 2009 by in Letters

In case you were unaware the market is at the very tipping point.  The penetration of the 200 day moving average is traditionally, in bear markets, a bull trap.  The rally is getting a little long in the tooth.  Additionally price is right on the neckline -- a perfect place to turn back.  And, according to Karnak's crystal ball the next few days should see increased volatility.  Maybe a lot of volatility.  Powerful down bars would put us short again, and we think it is imperative that investors have some shorts in their portfolios at this moment.

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