Well, that was quite the reversal. My highest profit of the day was pretty much the millisecond that the market opened. It was all downhill from there. A glance at XLB, the Materials ETF, shows that the market is having just a bit of trouble making its mind up.
Slope of Hope Blog Posts
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What a reversal today, eh? Jeeeeeeeeez. Anyway, just a glance at a couple of big commodity-focused funds, showing how the world of commodities (which everyone seems bullish about, since it’s an “inflation trade”, straight from the early 1970s) is going south.
I believe stocks have personalities, just like people do. I am drawn to stocks that have exhibited a clear tendency to fall hard when they form a clean top. A favorite of mine these days is Advanced Micro Devices (AMD). The pas instances of tops followed by big drops is a marvel to behold.
During yesterday morning’s pointless run-up in valuations, I remarked how I wasn’t concerned, because the broader trend was with the bears. Likewise, with this morning’s smack-down, I’m not dancing on the table with glee, because it’s just another knee-jerk response to what now seems like a daly tit-for-tat response between China and the U.S. As I keep saying, it’s all about February 9’s lows. We need to break them and close beneath them to get cookin’.