I am going to get a bit net short now for the first time in a long while. First of all, it's the most hated trade in the world. Bulls will call me crazy, and bears will too. The market only goes up right now it seems and bears would rather on the sidelines than to "fight the tape"
But the Dow is now in the area of the 200 period moving average on the weekly chart and the 50 period moving average on the monthly chart. With sentiment now reaching bubblicious levels in the options market ( www.zerohedge.com/sites/default/files/images/user5/imageroot/paulson/Put%20Call%20Ratio%204.15.jpg ) and the tick chart registering at record levels ( www.zerohedge.com/sites/default/files/images/user5/imageroot/paulson/Nasdaq%20TICK%204.15.jpg ), it is time for me to take the other side of the world.
No one wants to be net short at this point. Based on the extremes going on in the never ending melt up, I am going to begin to scale in on the net short side into this ramp.
Disclosure: Long SH, SPXU, SDS, TWM, QID
The World's Most Hated Trade
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