This morning, the stock-market action is looking a bit like Charlie Sheen after a raging Hollywood party. Remember, the best parties always have a hangover. The market has grown increasingly volatile over the last few days. It's not the kind of action that I like. In addition, the currency world has been positively insane, with massive swings in the Euro, Dollar, and gold. Right now the dollar is screaming and the Euro is down about 150 points. This wild currency action is indicative of more instability in the sovereign debt markets. I spent the morning unloading the most of the remaining stocks that I owned that had been accumulated in the last 6-12 months. The reason? A lot of these stocks have run long and strong. These violent market swings, and the S&P chart, have my spidey-sense tingling. I will keep a few low-priced blue chip stocks but for the moment, with this kind of market action, I'm content to sit on a very large cash position. And I'm hedging that by shorting S&P futures. With the futures position, I don't have any problem being slightly net short at the moment. See the chart below and what do you think? I've seen this  formation before and I like to call it a "diving-board chart." That's fine, if there's water in the pool. But what if the pool is just cold, hard cement?