A shot across the bow

Recent bearish market action is the same action I recently have been warning about, in spite of the recovery highs recently recorded: bearish setups, sudden failures (think TEVA), lack of positive follow-through to seemingly bullish news, poor (read, negative) inter-market relationships (tumbling US$, rising oil prices, rising interest rates), etc... And all conflated by the typical seasonal weakness. In a word, not good. (Oops, make that two words!)

This upcoming patch of market time we now face looks not at all promising for the bulls. As I scan the markets, the patterns I see are not bullish setups. As such, I have sold down my portfolio to my "sleeping point" -- and probably will step aside, and perhaps even away from the markets for a protracted period. Even my most highly-prized favorites likely will not withstand the coming fusillade.

Be aware. Be wary. Be prepared.
-- David M Gordon / The Deipnosophist