Last weekend it was noted in NFTRH that the HDGE actively managed bear fund has begun to rise despite a still buoyant broad US market.  Aside from being a profit making vehicle when the market begins to correct, it is also another indicator that things are not well beneath the surface of the market.  This fund shorts the scams and accounting tricksters, which are no longer going up as the market apparently refines (thins out) to quality.  In other words, speculative juices may be drying up.

HDGE w/ SPX, click for full view

I took a listen last week to the fund’s manager and decided to start a position against longs.  What I am going to do now is reduce or eliminate longs and sit on cash while very slowly trying to get short over the next month or two, depending on the market*.  People interested in bear exposure might want to take a listen and see if the manager’s strategy makes sense.  I think something like this – if you trust the managers – is better than the leveraged bear ETFs.

* Just as speculated in a post yesterday, it appears da bull boyz is gonna try to ram da shortz dis morning using some kind of Auto sales hype.  Topping is probably going to be a long and grinding process.  Keep in mind how long it took for the obvious bullish trend to emerge from the actual bottom last spring.

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