12/13/2016: "I am bullish for 2017 based on the Yearly Pivot Promise but jeez, multiple index YR levels, option expiration, FOMC and sentiment would make an ideal trading high."

So there you have it. I'm not sure how far the market drops from here but so far this was the right take. For positioning I'm pretty happy with the -30% IWM hedge and -10% FXI short both mentioned in the weekend Total market view and specifically recommended in 12/12 SPY Daily.

Per yesterday's positioning note, we said take some gains off the table to further reduce on the long side if yearly levels looked like resistance. The decision of when to remove hedges and cover shorts will be the tough call. The market may rebound Thursday - opposite of FOMC day move is common - but given political risk of Electoral College I may sleep better being only partially long into 12/19.

Positioning coming into today
3 IWM, 2 DIA
3 XLF, 1 SMH
1 RSX
1 QQQ from 12/7
= 110% long

3 IWM short hedges from 12/12
1 FXI short from 12/12
= -40% short

For 70% net long and 150% total exposure. (Not including 2 DXY long and 1 oil long which is a separate 1-5 scale.)

Per yesterday's note, if market reacted negatively from yearly levels I mentioned taking gains on DIA. If out 1 then 100% long and the shorts & hedges adjust to for 60% net long. Adding 1 FXI short with Q4P and DecP resistance, below all daily MAs except D200, for -50% short and maintaining 150% exposure. RSX was down a lot and that probably should be the next to go based on weekly chart technicals.

SPY, IWM, FXI (pivots only chart) and RSX (weekly with standard technicals) below.

PS: DXY tagged YR1 today. That is a partial take. In 2017 I will do more on the 1-5 scale for commodities & currencies if time permits.