The markets continued to press higher last week but cracks are appearing in this long in the tooth rally and we are looking to build positions to the short side. While the stock market topping out is a process and not a plummet normally it will take some time and patience to build positions. We continue to be bearish on the US Dollar and bullish on commodities because in the longer term we believe that rate hikes approved by Janet Yellen and the Federal Reserve are only being done now to prepare for the forthcoming recession which is long overdue. One could argue that we are already in a manufacturing recession. With PE multiples stretched and the technicals so extended the stage  is set for a long overdue bear market.

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