Don’t Buy a Bear Market

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Maybe yesterday was just a fluke. We are, after all, back in a bear market, and yesterday's relief rally seems to have fully shot its wad.

My worst loss today, by far, came from a long IWM position. The market has been desperately trying to hammer out some kind of short-term base, but each time it looks ready to rock, it falls to pieces again.

The most persistently bullish chart in the market right now is, of course, gold. Now that it's broken above this huge ascending triangle pattern, shown below via GLD, it's hard to say just how high it could fly.