We got the massive bear market rally I was looking for off the lows (or at least I will assume this a bear market rally and not the start of something better at this time). I am completely out of all long positions now and looking to start shorting in spots. Some leading economic indicators are starting to stall and the index charts are looking pretty broken. About the best positive for the market is the fact that the Fed is starting to sound pretty dovish and could possibly be done raising rates during this cycle (still 2 rate increases at least forecast but most are doubting this). They are still running off the assets accumulated during QE and therefore we still have the QT going on and going forward - the E (easing) is now T (tightening). Also the yield curve is flatter and almost inverted and therefore the recession is just around the corner (historically speaking). My only concern (from a bearish perspective) is the fact that every little positive headline (China deal!!!) shoots the indexes higher but just the opposite headline (No deal in sight!!!) does little to no damage and therefore we are still in a bullish bias near term (at least currently). Time will tell
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