Update

Well, after last week's 5% drubbing of the equity market, I think it's time to evaluate my positions on a technical basis. In fact, at the end of last week, the S&P, Dow, Dollar, and gold all stopped right at support or resistance levels.

The retail shorts have done me very well, with ANF now at a 20-25% profit. It's down from $38 to $30. I'm going to look at taking a couple of short-term profits. I can hang on to the rest of my shorts if the market breaks down, or go back in if it powers higher.

As far as news goes, Tishman-Speyer has defaulted on Stuyvesant Town. That's $4.4 billion in CRE mortgage debt that's going to take a 50%+ loss.

China's property bubble picked up steam in December, with property prices rising the most in a year and a half. Also, inflation is starting to rear its head in China. I don't doubt that the PBC will fight inflation. Unemployment angers people who don't have a job. But inflation will also cause unrest among those who do as well.

There's some interesting news in the bond market. In a sign that the U.S. consumer is clearly the leading edge of the Treausury-purchasing machine called China, China accounted for only 5% of U.S. funding in 2009, down from 50% in 2006. In fact, in the second half of last year, they were net sellers, and the market has held up well.
Also, the futures market still shows a chance of tightening by the Fed later this year. I don't believe it, and will close my bond position either when new info causes me to rethink that belief or when market sentiment swings back towards expectations of further easing.