Validating the Short

The market has lent some credence to my idea that U.S. stocks are overbought. The unimpressive Google (GOOG) earnings provided the pinprick the stock market needed to fall.

I would expect the fall that commenced on Friday to continue and intensify this week, with some minor pullbacks caused by positive earnings in some U.S. companies. I have therefore put on a 50% increase in my short position (SPY).

Disclosure: I am short SPY.

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