The inability of the stock market to hold a downtrend more than two days is driving me insane (again). It has been two years since there has even been a drop off lasting a couple of weeks.
It was just a month ago that we were in the throes of an all-too-brief bout of excitement. But, looking back, it’s evident that 90% of the move was confined to just two trading sessions. Yep. That was it. For two years of waiting, we got just two days of glory. The next morning was a panic low, and bang, we were back into the unending quagmire.
So things have become dull quickly again. Even with what should be super bearish news (Gary Cohn fleeing the White House and a major trade war loudly telegraphed), the market doesn’t seem to care anymore. At the moment, we’re close to, medium-term, a rather important level of resistance. This is our fifth “white bar” day in a row, so it’s clear the bulls are fighting back and want to seize control again.
For myself, I remain rather aggressively short at 233%. A substantial amount of this sum is in slow-moving instruments (but fascinating charts) EMB, HYG, and JNK (indeed, those are my only ETFs and my only large positions). The rest is scattered amongst a hodgepodge of small shorts.
For my bearish brethren, if there are any left, I can only offer this piece of exciting news, hot off the press: