Market Update

As you can see, the market is in a very dangerous position, we are making new lows on the S&P. Right now we have 1 min positive divergences in the DIA, QQQQ, and IWM. What happens next will be very important, whether the market can rally back above support and hold a close there or not.

The events in Japan, Bahrain and the possibility of a no-fly zone ever increasing, over Libya are coming together as a trifecta of really bad news. Each of these on their own are probably the worst news events and most disconcerting market events we've seen to date and all 3 are now happening at once.

We'll keep an eye on the market's behavior today, but as I said last night, "It's time to have your feet in the water, not just toes any more" regarding short positions. I'd use any strength to add to them here, but still I probably would not want to much more then 50% of my portfolio short at maximum. I'd want at least 25% in cash-and up to 50%.