With the plethora of issues facing the world economy right now its almost incomprehensible that we’ll witness a V bottom in the S&P 500. The odds are high that we’ll revisit the low of 1120 soon. Very few bottoms are of the V shaped variety, more likely is the multiple retest of 1120 which if it holds will represent a much better buying opportunity.
There is also the chance that 1120 will not hold, especially when considering that September is the worst performance month for equities. Considering that the Euro can go either way, Gold remains a solid holding.
I continue to add to SDS hedges as the markets rise.
Other than that I’m standing pat.
Long GLD and SDS