Caution warranted

Risk taking was reversed on its head last Friday on the back of the SEC suit against Goldman. Equities and commodities have been teetering into a topping pattern and the dollar index has stubbornly held its current level. I (was forced to) cut my position in half, and am now wondering how to trade the remaining position.

A short term rebound from here is possible, but I’m open to the possibility that we’re in for some seasonal weakness over the next few months. In such case, a good strategy would be to exit the remaining position on any rallies and short some contracts here and there.