Monday Rumblings

California moves toward default.

Europe is down early.

Riots in Xingiang province in China.

Short interest rising.

An intermediate term H&S is forming on the S&P 500.

I worry that big money beefers who bought the lows are about to exit, and that others are going to push the bear side again. With limited positive cash flows, there really isn't much support if this consolidation range is broken to the downside.

And I worry about that fellow riding in my chariot [figuratively] who was whispering to me when Obama Fund was up 65% year to date, saying "you are not a god".

I also have many distractions. Perhaps these are affecting my will to be steadfast. Or not.

Nothing is certain until done, but I might cut back Obama Fund's long position today.

PS: As posted in the comments early, I did sell out Obama Fund to cash, locking in a 31% year to date gain. The way I read the chart, a red close breaks the H&S neckline down (it tilts a bit). With futures so weak early, it seems clear little or no new cash came into stocks in the start of the quarter. I also sold GE in Fido Fund. That stocks seems dead for a while until the financial regulation clears up the status of GE Capital.

On a decent pulback, I'd re-load unless the news gets worse.

Word of the Day

"Sang-froid" - noun
Sang-froid means composure, imperturbability.
Sentence: Trying to maintain snag-froid in the face of numerous distractions and demands can be quite difficult.