"Sell" says one Fund Manager

Article in the FT today where one highly respected fund manager says that he has sold half of his holdings in preparation for a possible 20% correction in the U.S. stock market caused by a recession later this year. This story is supposedly getting a great deal of press on the street today, largely because there isn't much else going on. The banking index is weak today and I am closely watching C and GS as the "tells."

The prices paid component of this mornings ISM report renewed the markets inflation fears and has led to gold rallying $8.00 or so. With gold's strength, it is interesting how AUY trades a bit offered.

Shorted Best Buy this morning when it rallied after it announced earnings. That trade so far has worked nicely. It is hanging around support here at 48.10.....should trade lower if mkt moves lower into the close.

I have added to some index puts that I own and added some to my SDS position. Pared back a little in BA and GR. This is a good market to be cautious in.