I decreased my short position a few days ago to re-position on a rally. We got the rally to SP 30-minute M/A, where I repurchased short ETFs yesterday. I bought short silver yesterday and short Euro at the close. Currently 5% SDS, 2% EUO, 1% ZSL, 1% SOPIX, 1% UCPIX.
All of these positions are strongly correlated with "Risk-Off" sentiment. The bounce from 4/18 lows has been tepid. I1, raw and smoothed, is pointing down into July and again mid-August. The short-term timing component of I1 peaked at over 12 two days ago but allows for rally through tomorrow. This component indicates that a waterfall decline is still ahead but not for another 2 days.
I'll buy another 2% SDS if SP futures rally 5 points over their 30-minute M/A and sell 4% SDS on a 30-minute close more than .5% above the M/A.
When the stock market gives it up the dollar will benefit. A big hurdle is at 75+ in DX futures. I plan on selling EUO there and awaiting .7% beyond to put short Euro back on.