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).
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……..
Back on May 3rd, I did a Slope Plus post suggesting going long the US dollar. As I phrased it at the time: “The Yen and Euro have been very strong in recent months. I believe this is about to turn, and thus I am banking on a strengthening dollar. There are plenty of ways to play this (short the Euro, short the Yen, etc.) but I’m going to use the lame-o, thinly-traded UUP.”
Well, let’s take a fresh look at the charts. Shorting the Yen has gone pretty well, and there doesn’t seem to be much in the way of support, so this probably is a good “hold”: