Two months ago (and it feels like, oh, about half a decade) I did a post called Whiskey Tango Foxtrot (heh……..) in which I laid out four potential pathways for the market, the last one of which, “Delta”, was the most bearish. Having survived the nightmare of 2009-2018, I was not optimistic about it happening, but I offered it anyway:
Things unfolded awfully close, although it was more of a “W” pattern instead of the simple “V” (thanks to the G-20 Trade Truce).
So what’s next? Well, as my premium members know already, I shifted gears big-time this morning, taking on a very large short position in bonds and easing way back on my equity shorts. In fact – – and you’re not going to believe I am writing this – – I would love/love/love to see a huge, monstrous, big-ass equity RALLY (yes, rally) in January.
I’ll write more on this topic later. The past three weeks have been more meaningful to the market than the eleven other months of 2018, and I’m terrifically excited.