A Pause

➤ S&P500 holding near the upper pink resistance zone in a tight range. This is looking like the calm before a storm. A storming Bull that is.

➤ My exposure remains at -50%. That means we are short the market using half of our capital. This is low-moderate conviction. The maximum is +/- 200%, the level of highest conviction.

➤ My short positions in S&P500, DJIA and NASDAQ look particularly vulnerable. They will be cut if we see a dip in the VIX by close of trade Friday and most likely reversed to a Bullish bias. The only saviour I can see at the moment is if we have a jump in volatility due to some good old weekend profit-taking. This scenario hasn't occurred much during this bull run. I'm not holding my breath.

➤ Conclusion: This is my 3rd attempt at putting on shorts since this bull phase. Two tries, two fails. It looks like 3 strikes and I'm out.