Just a few days ago, Ron Insana was warning us of the coming breakdown in equities:
As everyone knows, I am looking for a pullback of about 10%-15% between now and the end of October. Rather than sitting idly in cash as the moment approaches, I will take some money and put it work on the short side while I sharpen my pencil and do the necessary work to identify those stocks that I want to buy back for an end-of-year bounce that I believe will be driven by the mountains of cash that have yet to be deployed in this market.
Here's what he's doing today:
I took off all my short bets on stocks, banks and copper yesterday and sold my crude oil calls. I can't tell which way any market is going to break from here. There is no follow-through in stocks and seemingly no message from the markets except one of caution and worry. I am back in cash for the moment.
I'm not highlighting this to show his inconsistency, but to highlight good trading. Let the market tell you what the next move will be. If gold is moving up, doesn't that mean equities are cheap? Or does the move in gold tell you, that the folks in London, shorted against Hong Kong's gold position in the depositories, and now they need to buy it back?
Whatever it means, in this market, the hardest call, has been too stay long stocks.
Which means it should be the most profitable.