I think this sideways move is about done and unless the 1391 level breaks, I think we will see a rally that has a good chance of putting in a new high. Right now we're in a market driven completely by QE expectations and if Europe pleases the market, we should see a strong rally. I think it was interesting that Fedex pre-announced and the market did not even care, usually Fedex performance is directly correlated with the economy and in turn earnings for companies. I personally rather see a market that rallies on positive economic prospects than liquidity, but at the end of the day the result is the same so it seems like I'll continue to be 100% long for a while. I am currently uncomfortably hedged as my instinct tells me we are about to break out to the upside but the market continues to trade under the trend average.
Long Term Portfolio: 100% Long
Short Term Trading Strategy: Hedged with VXX @ $11.40 as of 09/04/2012
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