Category Archives: Defeat

No Country for Old Bears

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Well, the three remaining equity bears on Earth got their last hopes blow-torched overnight, as central banks continue to do what they do best – – – ease. China dropped interest rates (because God knows what’s holding the world economy back are the sky-high interest rates we’re all burdened with), and Europe decide to go Full Kuroda on their own “easing” (sending EUR/USD into a free-fall). Suffice it to say almost everything but the Euro – – crude oil, gold, equities – – is flying higher. Here’s the ES (including, for big laffz, the brief bout of weakness it had during the times of Ebola):

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Bear Despair

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Tonight I’m going to forego the usual quest for thin reeds on which to hang the equity bear case, and instead offer up reasons why all hope is lost for now. So here goes…..

First, the Dow Jones Composite has penetrated and successfully tested its former resistance line. This resistance is now acting as support, as illustrated by yesterday’s test of the line and today’s acceleration up and away from it.

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Trillion

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Thanks to the Bank of Japan, I got pretty much no sleep at all last night. As you all know, they announced that they would be printing up nearly a trillion dollars a year, with no stated end-date, for the purpose of buying up their own government’s bonds as well as equities, both domestic and abroad. The currency wars are in full swing, and we have truly lurched into a new level of insanity. My bearishness on precious metals and crude oil (and their producers) is the only silver lining right now.

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