The market has lost abound five percent so far in November. Even though I more or less declared myself a bear with my prior post, I have to recognize some potentially positive developments: volatility has been declining in recent weeks. The situation reminds me of the 2010 summer decline:
The July - September bottoming process was accompanied by declining volatility as can be seen by looking at the Average True Range (ATR) and the VIX. The situation is similar now, the VIX could decay a little bit faster for my taste. In any case, I would be very careful shorting the market at this point.
As for the Covestor Model Portfolio, I'm currently short XLF and DB. I'm not really comfortable with these positions, so I will close them soon.