JoshY
Short

It's time to short the markets.

INDEX:NASX   Nasdaq Composite
695 5 3
NASDAQ is showing very strong overbought signals by the StochRSI, MACD , and triangle patterns. Fundamentals for the stock market are weak and weakening with a rapid decline in the USD to be expected over the next years. My recommendation is to invest in inverse ETF's and diversify your holdings into bitcoin and litecoin.

China is vying for power and recognition as the world's super power and will push the Yuan as the new international reserve currency. During this time we should expect the United States to engage in a significant military conflict which will further devalue the USD.

Excerpt from: http://en.wikipedia.org/wiki/Reserve_currency#Call_for_new_major_reserve_currency
"A report released by the United Nations Conference on Trade and Development in 2010, called for abandoning the U.S. dollar as the single major reserve currency. The report states that the new reserve system should not be based on a single currency or even multiple national currencies but instead permit the emission of international liquidity to create a more stable global financial system.

Countries such as Russia and the People's Republic of China, central banks , and economic analysts and groups, such as the Gulf Cooperation Council, have expressed a desire to see an independent new currency replace the dollar as the reserve currency.

On 10 July 2009, Russian President Medvedev proposed a new 'world currency' at the G8 meeting in London as an alternative reserve currency to replace the dollar.

According to economist Michael Hudson, China has said, "we don't want to make any more foreign exchange reserve of any paper currency, because all the paper currencies are government debt currencies ." China, Russia, India, Turkey, Brazil, Venezuela and oil-producing countries have recently agreed "to transact all of their mutual trade and investment in their own currencies" effectively minimizing the need, at least in the short term, for a global reserve currency. And yet oil             is still priced in dollars, which has brought complaints about OPEC's policies of managing oil             quotas to maintain dollar price stability."
Wait until there is confirmed weakness to short. Otherwise its just a donation of money. There's always reasons to be bearish but the trend still says higher.
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JonR tpavlik
Keep 1/3 cash allocated for UltraShort ETFs and when downtrend is confirmed, exit longs and go short. For margin accounts it may be better to short the ultra long ETFs.
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Isn't USD strength is inversely proportional to the market? That's why the market has been going up since March 2009 - Fed Printing.
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While I agree there are many indicators yelling OVERSOLD, that isn't necessarily a good time to go short. Caution is in order and there should be strong confirmation before going against the Bull. The circumference of Earth was determined two millennia before Columbus sailed west from Spain. It sometimes take awhile for the world to catch up with the facts.

Regarding the USD losing its place as the reserve currency: that may happen, but it is unlikely to occur in the next few years. It may not happen in our lifetimes and it will certainly not be a sudden event. You may want to consider that before placing a large bet.

Best of luck to you in your trading.
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Caution has already been advised on this but I just want to add that if a correction comes it very well may be small. Late stage bull markets have a habit of drawing bears in with a fake and then throwing them off the table as it keeps rising higher. Trend lines are defied all the time.
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