Weekly update

Ok, so the projection from last week was to look for a brief flushout starting Monday. It will be very important to see how the emerging markets are behaving, considering the weak technical picture shown in the earlier post. With holiday volumes here in the west, it is easy to envision a slow pain trade grind with a positive bias simply because of the negative positioning and sentiment. But there is something potentially very weak out there which deserves to be taken very seriously. I would not trade with more than 50% of normal volume until there is more clarity. Are these markets ready to really break higher? I doubt so and would rather than participate in the upside, decrease longs the coming weeks and end up fully net short by the end of the year.