So even though charts are totally without merit, technical analysis is a hare-brained fantasy, and Fibonaccis are a joke (at least according to the upstanding citizens who swing by Slope for time to time for no other purpose to pee on my raison d’etre) , I wanted to follow up on my post from last night. Because of a loving, merciful God, crude is, in fact, falling to pieces, down about 4.2% as I am typing these words, completely in line with what Fibonacci (and my trendline, shown in green) predicted:
The blue tint is the Fib level, and it must be broken for the next phase to begin. If it does, we can look forward to the green tint as the drop zone, with about $42.25 as our next target.
Of course, that’s only if you believe this nonsense.
Back on May 8th, I did a video of short ideas, the first of which was Fiesta Restaurant Group, which at the time was about $33. It has lost about one-third of its value since then, but I’m holding on. I think it’s got a lot farther to go (but I’ve obviously tightened my stop up).
I guess my prediction that DXJ would fall (made on April 20th) had some merit to it; thanks, Head and Shoulders! I confess, I am envious of a market that can GO down and STAY down (as I glance over at the SPY, which is down fifteen hundredths of a single percentage point as I’m typing this).
This was one of my featured shorts over the weekend. Looks like the 1% are starting to feel it.
I want to quote something I penned back in the (much happier) days of January 9, 2016 about the presidential election: “Hillary Clinton will win the election if things more or less, kinda sorta stay the same. In other words, the status quo begets the status quo…………….It’s as simple as that. Status Quo means Hillary. Financial Mayhem means Bernie. Fear means Trump. The events above will determine the winner. You heard it here first.”
Well, look around. You’ve got a VIX that was just yesterday at $12. You’ve got a Wall Street which runs with impunity. You’ve got the Clintons, who have squeezed countless tens of millions out of the corrupt system, all the while espousing the virtues of the lower classes (while wearing $13,000 Armani jackets). And you’ve got a market which is applauding this apathy by way of charts that look just like they do every day……..the S&P……..