We’re into the last of the dog days of summer, and what a summer it has been. The weather was the best I remember in a long time and the markets have had a terrific summer too. My neck has seen more red days than the stock market since the middle of June.

As the major Wall Street players travel back from the Hamptons and get back behind the trading desks, this stock market should soon take a solid direction again – one way or another.

Last week I added significantly to our natural gas holdings and a defense company. These positions reflect a combination of trend-following plays and my macro outlook. Essentially, I think natural gas is poised to surge and the violence overseas doesn’t appear to be de-escalating.

I was pleased to have added the liquid alternative position as well to protect the portfolio should volatility increase. My boating season might be coming to an end, but the liquid alternative is sort of like hanging onto a life jacket to keep the portfolio above-water in case the ship goes down… all part of the float plan.