Tepid Response to Yesterday’s Bloodletting

Today’s top industries are ridiculous ones: electronics retailers and silver. People are plowing money into BBY and nefarious silver miners as if the year was 2006 and the flat screen had just broken through the middle class ranks.

Let’s see the market for what it is and what it’s going to be.

Barely 50% of stocks are up today and we’ve given back the rally–as all indices are now lower.

The dollar is up, TLT is up and commodities are decidedly lower. This is no longer a “long only” market, but one that you should fear.

For the love of God, people are buying Bitcoins to make money, not to preserve wealth. We’ve hit the apex of speculation and can go no more.

I am officially bearish on the markets, with a net bearish position, no longer interested in hedging–but making money on the downside. There is a distinction between the two. The majority of my cash (60%) will remain idle, as the market corrects. There will be moments of weakness, where I jump in prematurely, so know that in advance.

If I am right, the market meanders in a tight range until late April, then drops off the table in May for a 5%+ decline, exacerbated by further losses in June.

But remember, there is nothing wrong with a little correction. We need to nourish the tree of the markets with the blood of the moronic trader.