Posted by: rp on the 5th of Jan 2012 at 02:26 pm
kalinm- i agree. i’ve been closely watching the market breadth along with other things in the last few days. i won’t bet the farm on it (although i have a nice little portfolio of “wager” shorts), but i think we could drop 1000 dow points in the next week or two. with the EURO losing key support today and the $USD just below a key resistance level (i.e.- on the verge of a potential breakout), coupled with the extreme complacency as evidenced by the VIX, bull/bear ratios etc… all those things are ingredients for a POTENTIAL (as in “not a guaranteed”but a possible) major sell-off. if we get a catalyst to trigger it, i will be “all-in” on the short side. until then, still playing both sides (long and short, with a short bias).