I have long been a fan of web comic The Oatmeal for a variety of reasons (not the least of which is that he successfully fought off the doucheist attorney in these here United States, and completely shamed the man too, as frosting on the cake). The latest entry is particularly good: you may never have thought mantis shrimp were awesome (I certainly didn’t), but you will soon change your mind
As I’m writing this the S&P is in beautiful new all time high territory. The concept of a correction has now been downgraded to, at worst, a gap down in the morning to be bought and at best, a five point intraday drop. This is the world we live in. And the consensus seems to be that this will continue for the foreseeable future. Every central bank in the world is printing, there is zero fear, and we are now in Livermore’s AOT market meaning “buy any old thing.”
Another day, another historic record in equities!
Perhaps you’d think I’d give up shorting. Not a chance! I’m delighted to be selling into this kind of strength. I offer for your consideration Exhibit A: AutoZone. I shorted it Monday and bought puts. I covered it yesterday and sold those puts, both at a profit. With today’s strength, I am repeating Monday’s action, with the intend of holding it longer than just a day.
I tend to avoid talking politics as my own libertarian views aren’t widely shared, but I’ve been listening with great amusement on the radio this morning to UK Feminists having to acknowledge that Margaret Thatcher advanced the cause of women’s rights while criticizing everything else about her. She would have enjoyed that too, as while she was definitely a feminist (small f) in favor of equality for women, she despised Feminism (the political movement) as hopelessly left wing and misandrist (the female equivalent of misogynist meaning hater of women).
The following 3 Daily ratio charts show that:
- the SPX is outperforming the VIX, but the ratio is at a major resistance level…the Momentum indicator has just turned positive above the Zero level
- the NDX is struggling to outperform the VXN, and the ratio is at a downtrend resistance and well below a major resistance level…the Momentum indicator has turned up and is just below the Zero level
- the RUT is also struggling to outperform the RVX, and the ratio is well below a downtrend resistance and below two major resistance levels…the Momentum indicator has turned up and is just below the Zero level