Neutral on Market Short Term - Exited SDS Position

The Investor's Intelligence newsletter today painted a very bearish picture as bullish sentiment has risen to heights not seen since early May, two weeks after the market top. The balance to that is a very bullish short term picture painted by the Quantifiable Edges newsletter and the seasonal affect heading into the Thanksgiving holiday.

This morning I exited my short position with a small gain with the intention of reevaluating prior to Thanksgiving or the following Monday. I believe the stock market is likely to struggle off these levels and stage a rally for the next week, but regardless, I plan on letting the stock market clarify it's position before I take another position.

--Fred

Short Position Taken

Investor's Intellegence reported today that Buying Climaxes took a big jump upwards and so that adds the last straw to the camel's back. Sentiment is very high according to AAII also and it appears that all the smart money that front ran the Fed's Quantitative Easing Program is now selling (everything) and the typical investor is panic buying, afraid of missing the rally to new highs. This is a classic stock market top, ripe for the picking.

Investor's Intellegence has also reported strong insider selling for some time now and let's face it, this rally is long in the tooth, even if you are long-term bullish, which I am not.

I took a 50% short postion in the stock market via SDS. I won't use a tight stop but instead will allow the market some leeway as the next 6 days up until Thanksgiving may provide a bit of seasonal support.