Updated Position (and sawing the branch on which I was sitting)

Tuesday dealt a step back here and in the end I was forced to back-off; shift towards defensive.

At the same time I am pleased with the re-risen chorus of warnings (over the market's fresh technical breach!), coincident with the still-juicy charts, of still too many names, atop a still too-low number of 52-week lows, and a general still-born faith we'll (James) garner any economic prowess any time soon.

If my read on this is right (and if not the lovely image below is backwards from my face), then prices and calendar dates should find a way to march leadership higher (again!), before these warnings find merit.

The chorus should be one of hope and promise before serious thrashings prevail again. Not that it's always the case, but again: when the long-only crowd is afraid to play, coincident with so many strong stocks on the tape, those leading stocks (if not all boats) should work their way higher, through all the resounding drama and chaos, until long-only loggerheads start searching the party for a clean cup.

Follow Centrifugal to fade trades in real time.

Total Position: Currently ~1.84-to-1 net-long; 79% invested

Currently Long (according to size): CRM (11.4%); NFLX (increased today, 10.9%); EWS-Singapore (6.8%); SWN (6.2%); CISG (5%), AVGO (reduced today, 3.6%); ULTA (4.7%); CAVM (4.3%); LOGM (3.6%)

Currently Short: SDS-long (S&P500-short, reloaded today, 13.7%); DTV (4.9%); APOL (4.1%)
Note: Inverse ETF currently weighted @1.6 x's

Futures: no current position

-bear-trap brooch

Fuzzy Bear Trap? (quicknote on the new week)

Action is further negative so far today, following Friday's reversal lower, but there is nothing yet overly concerning in either market internals or the behavior in leadership stocks.

I wouldn't suggest we're good to reverse higher today and things could deteriorate further certainly, but I am not against adding-back to longs on the weakness. Volume is declining from Friday's pace (constructive) and neither market breadth, Up-to-Down volume ratios, numbers of new 52-wk lows, or really anything else I am seeing point to an imminent rout. Certainly, the ever-bear camp of SKF/FAZ/SRS, etc. is not getting a ton of relief just yet. Tomorrow is another day; further weakness would cause me to increase defense; one step at a time; we'll see.

Easy game ;)

As far as hedges, I shifted from SDS to TWM (as the Russell2k is weakest of the majors on the session).

Total Position: 2.18-to-1 net-long (plays 1.40-to-1 net-long considering levered TWM); 56% invested
(Note: inverse-ETF TWM represents being dbl-short the Russell2k index)

Currently Long (according to size): TQNT (re-increased today, 4.8%), ASIA (4.5%), SWN (4.5%), RAX (4.2%), WFT (4.2%), PEET (3.8%), ARST (3.4%), SNDA (reloaded, 3.1%), AU (reloaded, 3.1%), CYOU (reloaded, 3%)

Currently Short (according to size): TWM-long (new, 9.9%; Russell2k Dbl-short), ONXX (4%), MYGN (3.9%)

Futures Accounts: covered 20% short Jun NDX, ave. 1476.50; from 1495.75 ave Friday