Tuesday, May 31, 2011

5/31 Daily Commentary

I came into today with no short ETFs but started stepping into a position with 3% SDS and 2% DXD.  The short-term timing component of I1 registers a potential high tomorrow.
The 30-day I1 declined below +6.5 today, which is why I chose to enter the ETF shorts.  I will increase short ETFs until they are at least 10% capital.

I don't see the dollar launching a solid bull phase until QE2 runs out.

There is a Wikipedia table listing history's greatest earthquakes going back to 869AD in Japan when records were kept.  Since 2004 there have been 5 that have made the list, all >= 8.5 Richter.  I realize that recordkeeping was sporadic and intensity only estimated in the pre-1900 quakes.  However, this is an unmistakeable trend.

1 comment:

  1. Looks like Dow futures have broken through your envelope (as I write, futures are at 12584; adding backwardation that should easily exceed your range). Just curious whether you intend to stop out if prices hold up til morning? It sure looks to me like we have five up from the ES low on 5/25 or 5/26. I am surprised at the added strength this evening.