Beware of the Rally Made from Shit

All sorts of alarms, flashing lights and warning signals are going off in “The Fly’s” office.

Just know, when the shit hits the fan (pardon my excessive use of the word “shit”), “The Fly” will not be able to help you. You must have a game plan ready for the pending reversal.

Oh, it’s going to be awful. It will look like the end of days, part II—with all of its trimmings.

This rally is being fueled by speculative fervor. All of the low-end stocks are melting up, but the big ones are down. This tells me, we are close to a correction.

Make sure to be hedged.

Currently, I am short [[POT]], [[MER]], [[LEH]], [[FED]], [[DSL]], [[FHN]], [[CORS]], with downside exposure via [[SKF]], [[SRS]] and [[FXP]].

My bias is slightly to the upside, but will switch rapidly—as needed.