NOTE: I posted this about half an hour before the opening bell, but I “un-published” it since Jack and I bumped heads. Anyway, for what it’s worth………..
Well, I suppose if you read my post last night, it was pretty clear the market was ready to turn lower. When I reach points of existential despair, that beats any exponential moving average, bollinger band, trendline, or even Gartman.
I want to make clear right now, at 6:06 in the morning, that this drop won’t mean dick unless it sticks. Hey, that has a nice ring to it………..Johnny Cochran style.
For me, even before the jobs report, the best “sell” signal was what I have dubbed the EFA indicator. No, it doesn’t stand for Exponential Financial Average. It’s actually for Email From an Asshole, which I actually don’t get that often, but when I do, it invariably means a top is at hand. So, yeah, I got one at midnight last night (which indicates the kind of family life the chap must have, wedged between RedTube and YouPorn).
If you watch me on Tastytrade, you know that in spite of my reputation as a permabear, I’ve actually been quite bullish on four areas – gold, the yen, the Euro, and bonds – all of which are flying higher right now. Let’s hope it sticks. As for equities, again, I’m delighted to see all this red, but it has GOT to stay in force through day’s end, or else it means that NO news, whether good or bad, means a goddamn thing in this “market” of ours.