As we indicated in an earlier post, we are roughly 15% in cash and 5% short the S&P 500 (SH). Should we sell off roughly 3%-5% in the S&P 500 from peak we will reverse the short trade. Anything below 5% we will start to work cash back into the markets. We lost ground in May against the indexes, but should start to gain rapidly with the short position on the S&P 500.
We also think the time to exit DBV or lower our exposure could be on the horizon. We continue to stay overweight on large caps with a bias toward growth over value.
SH 1-year chart: