``There's a strong negative correlation between commercial traders' short positions and the Dow Jones Industrial Average, as the below chart shows. When short positions increase, the DJIA usually falls ... perfect timing! ... The other big takeaway from today's valuations is that when the correction does come, it will be severe. Findings from Star Capital show that downside risk tends to increase as market valuations become excessive. With current market valuations firmly in the "expensive" column, investors would be wise to proceed with caution.''

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