At 10:27 San Francisco time with the market looking like this we increased our hedges and are now net short the indices.  As we said earlier attempting to trade these minor waves is a fool’s errand.  Of course we have an analysis, and it is based on the earlier intraday chart, which shows a prevailing short term downtrend.

Also just to prove what jolly fellows we are we bought more FNM, FRE, GLD and SLV.

We passionately urge our readers to watch this comedy with amusement (and not to participate) and to be governed by the long term trend, which is still up.

In the meantime he who rides the tiger better not dismount lest he be eaten.