Sold Out

Before you read on please remember that any information that follows is neither a solicitation to buy or sell securities. The writer of this article may or may not own such securities at the time you are reading this article. And, don't be a complete idiot-- do your own research before you buy financial instruments of any kind.

Since some of you may have been following along from the market report I gave on March 20 (http://tedbits.blogspot.com/2009/03/bulldog-returns.html), I wanted to let you know that as of today, I am completely sold out of the above holdings and related equities. Signals were clear as of the first week of August that the market was weakening and I systematically tightened up my "stops". Over the past few weeks I have been taking money off the table and as of today, I am completely out. It was a great run.

I still believe in the China Recovery/Commodity Strategy but will not buy back in until I see a good 10%-15% retrenchment from current levels. My short position on the US Dollar is now closed and I am neutral on the dollar at this point. I like gold at $880/oz.

Other things I am watching:

Blackstone (BX) after it goes ex-dividend. Would love to see this at $10/share and probably start nibbling at $12.

China Battery (CBAK) at about $2.50/share.

And of course GLD, UDN, DBB, DBC, DBO after proper retracement.

For a speculative trade consider Image Sensing Systems, inc. (ISNS). Be very careful though because this stock is thinly traded. I am hoping for some institutional investors to move in on this one and send it to the stratosphere. I continue to have a minor position in ISNS.

It is possible that we will form a double bottom (http://tedbits.blogspot.com/2009/04/decoupling-double-bottom.html) because uncertainty is reoccurring in the financial markets as commercial real estate loans are defaulting.

Lastly, I must say I am getting more and more confused about inflation vs. deflation. I really believe we are heading for inflation if you've followed previous posts. However, I have read some compelling cases for deflation from reputable sources. The most clever point I read was a prediction for inflation in necessities and deflation in discretionary purchases. Ever since I read this it convinced me that this is probably our future.