June 2

9:30 P.M Quite busy today, so no trading. Nothing has changed since yesterday. At 975 hits, we will add another SPY sliver short. SLV continues to act extremely well in comparison to gold.

BUT look at SSRI & PAAS, they seem to have a small triangle in the 4th wave position signalling another shot up is in the works on the precious metals probably worth another 4-5%. We will look to reshort SSRI. BTW, the candlestick formation on SSRI looks interesting. Three days of gap ups but could not hold the gains on any of them.

Lets look at some fundamentals with a disclaimer ofcourse that we have absolutely no proven skills in macroeconomics :-). What we don't see any analyst out there talking is the dimishing trade gap.

The imports into america are falling because we are broke. The exports have been increasing as other countries as we either sell off assets to foreign countries or export to the newly found "wealthy" nations. The trade gap has been diminishing. One should not be surprised if the trade deficit turns into a surplus a few quarters down the road. This will lead to (at least a short term) dollar liquidity shortfall. Will the media cite this as a reason if the dollar rallies in the next few months?

10 P.M We noticed that our long term PUT order on the SPY SZCOR got filled today at 2.54. This is about 1% of our account.