It's time to short bonds again

Since I last wrote on January 29th, the major averages have gone nowhere. Since penning that piece I have fought a running battle with the indexes trading around what has been a heavily hedged portfolio. My short positions were primarily the Dow Jones Industrial Average ($INDU) and the NASDAQ 100 ($NDX) juxtaposed against my portfolio of individual long positions. As I explained in that article, for the more nimble there was a plethora of two-bar reversals on the major sectors and on the Dow Jones Industrials Average. My expectation was an imminent pullback that would offer better prices to pounce on. The worst case expectation was a pause. It now appears that a pause in the endless “up” is all we are going to get.

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