Still Seeing Call Buying - It's Time to Go Heavily Short

Today's equity put call ratio ended up being 0.60 (which is right at the median), despite the battering the market took. I would have expected a ratio much closer to 1.

So, if you're bullish, this is a bad sign. It indicates that you are in a crowded trade with lots of other stupid, complacent traders who buy into the "recovery" hype.

A great example of this is the geniuses who are not enthusiastic about Vodafone (cell phone company paying 6% dividend) but can't get enough unprofitable, leveraged, bankruptcy-candidate casino stocks.

This is one of the best investing setups I've ever seen.

After a year of "green shoots," should state treasurers be blocking tax refund payments to save cash?

How about this extremely alarming chart, of percentage job losses relative to peak employment month. The red dotted line is current employment data ex-Census jobs. Very very grim.

Meanwhile, you have the "death crosses" (technical analysis, 50 day moving average crossing below 200 day moving average) occurring in lots of markets: France, Netherlands, UK, Brazil, U.S. utilities, U.S. big pharma, various commodities.

It's time to go heavily short. I can't tell you what will happen next week or next month, but as George W Bush once said, "this sucker's goin' down."