After the letter is written, proofed and mailed out to subscribers I generally need to take a break from it all. This morning I went out for a run in the err, brisk New England fresh air. Head relatively clear, I can then take another look at the letter and write this 'out now' post before heading out to help coach my kid's softball clinic later.
#71 looks at the strong reversals in many markets, discusses the structure of portfolios in alignment with short, intermediate and long term views and seeks to define what the would-be recovery's nature will be. I have strong feelings in that regard.
Many markets currently remain correlated which, as a precious metals guy, does not make me overly bullish on the intermediate term. Yet profits were taken on most the NFTRH bear positions while PM positions were increased on Friday. Hammer candles are showing up all around, and this includes some areas that give me pause, again from a correlation point of view.
The bottom line is that the trend followers in the newsletter industry, professional money management industry and the AAII (individual investors) quickly came well off their hyper bullish (contrary indicator) stance. This serves as a platform where markets can rally. For a while. But we have definitely exited the tedious phase where every jock on autopilot can make money (or preserve capital).
Full Hubris '10 has likely ended, and now it is time for vigilance.
NFTRH71, out now.
Enjoy the rest of your weekend.
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