Unemployment at 25 Year High

Unemployment sored to a 25 year high this week with employers shedding 651,000 jobs in February. This brings the total jobs lost since the end of 2007 to 4.4 million.

Its getting to the point that not only do most people know someone that has been laid off, but they are also fearing for their own jobs.

The Nasdaq has now reached a 6 year low losing all the ground that was made up since the last bubble burst. The NYSE and DOW have lost even more ground gong back more then a decade.

The Q's have not quite broke the bottom, but I continue to be short.

This definately is a bear market like no other. The equity position is still to be fully in cash or short only. We have been able to pick off a number of tops that have rolled over with the market in the last couple of weeks and the real money is in holding these for maximum gains.

A lot of people are being tempted by the high dividend yields and perceived low prices at this point. Just remember dividends can and will be cut and even though a stock is off 90% doesn't make it cheap.

From the commodity side of things we picked the top on gold and silver and it looks like there may be another short opportunity this week. I recommended USO long last week and personally traded OIL. I will be adding to my position on Monday if OIL takes out the high again. GSG looks awful similar.

The above charts show why I am bullish on USO/OIL. The daily shows the MACD divergence and a breakout on Friday.