The Bear Growls

Having remained bearish since Mid May it feels like a lifetime. It has
also felt so right quite a few times along the journey to justify the
belief that bear market round 2 has begun.

The month started off with a bang and on day 1 we were up 4.5% and
then we gradually gave it back plus another 3.5% as yet another false
break down materialsed and we made new recovery highs.

Now the market is starting to present another bearish picture yet I am
currently not perfectly positioned for the bear story as there is
another game in play and that is risk management or damage control.

The message here is that in keeping with my policy of no regret it is
still important to build a framework to cater for the probability of
yet another bear fake.

I am comfortable with this overall strategy. What remains for me to
consider is how protective I become over P&L with month end on Wed
next week and Yom Kippur on Monday.

This will be partly decided in the next few hours.

Sent from my iPhone