Good Lord, China and Greece – – you just can’t let traders catch any rest, can you?
The list of headlines over this weekend has been worthy of an entire book.
+ Varoufakis resigns (!) in spite of a landslide “No” vote
+ The Chinese government’s unprecedented attempts to shore up their crumbling stock market (including, at the core, directly buying up tens of billions of equities itself) initially causes a massive up-gap across the board, only to be met with so much selling that, broadly speaking, most stocks simply sold off more (I think this is exactly what our own “dip-buyers” here are going to experience, more often than not, for years to come)
+ The energy complex resumes the bear market that it stopped in mid-March (my USO and RSX shorts are particularly pleased) due to what looks like an Iran deal going through soon
This Sunday/Monday has been an almost exact duplicate of last Sunday/Monday. To wit:
+ Huge initial sell-off in ES and NQ, followed all through the night by a recovery so that about half the loss is trimmed
+ A persistent drop in crude oil (hurrah!)
+ An initial burst higher in gold, only to be following by steady weakness, since gold simply cannot seem to stop sucking these days, having been in a four-year bear market
For myself, I’m pretty pleased. People seem to think I want a crash. I don’t! A crash will get too much attention from the “fixers” and would give Yellen cover to do something dramatic. No, I’d much rather have the steady drip-drip-drip weakening. So, yes, please, dip-buyers, keep buying those dips. Let’s keep this bear market very sneaky.