My apologies for the update being so late this evening and how brief it is going to be as time is of the essence right now.
It appears that we have put in a short term high and we should be looking for some lower prices over the next 3 or so days. It is important to keep in mind that this correction we may be entering needs to be rather shallow in order for the market to remain intermediate term healthy.
I have exited all of my short term long positions and will await an erosion in prices before I bump the main equity allocation up to 75% from the current 50% level.
There are also some opportunities here for the Chinese market and some very strong ETF's are how I will play this sector. FXI and PGJ are two of the best to own. I will be putting 35% of my dollars allocated to foreign investments to work in these Chinese ETF's. Currently my foreign exposure is zero, so this will bring the total allocation up to 35%.
On another note, we are officially out of Gander Mountain with a 20% gain in less than a week, so I am quite happy about that. Also, for the aggressive minded, the Three Day Trend Just purchased put options at the close today so take a look at the sidebar for more details about which options I purchased.
So we wait to see exactly the personality of this potential correction and from there we will get a fairly strong idea as to what to do next.