So, So Broken

By -

As you have surmised, I am returning to my beloved Palo Alto. Turns out this is a Non-Smoking flight, which clears things up quite a bit. All this time I thought it was the year 1973.

Anyway, what a bizarre time to be on the road, huh? And how silly I feel for worrying and wringing my hands in October how we were all going to get tricked again, just like in early February. Not this time, boy. This market is broken. So, so broken. And the devastating, destructive, global financial panic that I’ve been dreaming about for so long has finally been born like a smiling child in a crib.

Let’s take a look at a few indexes, shall we? And I do this out of love, because I’m wedged in a tiny airplane seat on freakin’ slow WiFi, but only my family means more to me than my beloved Slopers.

S&P 500 precisely at the cusp of breaking to new lows for the year
Russell 2000 completed its exceptional topping pattern (magenta) long ago, then broke long-term support (yellow tint) and is marching toward a failure of even 2017 lows!
The NASDAQ broken its uptrend (yellow) already and is now completing a major top (cyan)
The Dow Industrials is closing in on a failure of 2018 lows (blue horizontal line)
Notice a subtle difference in volume between the totally fake bull market and then the birth of an honest-to-God bear market? I’ve tinted it just in case it’s too subtle for you.

As a trading day, Monday was really odd for me. I came into the day quite nervous, because we were pretty beaten down already, but I was pleased to see my profit push to almost +2%. It quickly evaporated, however, and I was horrified to see a loss, getting as bad as almost -1%. But then Gundlach (I suppose) did his thing on CNBC, and all holy hell broke loose, and I saw soon looking at one of the most profitable days of the year.

It was absolutely one of those days in which I would have made more money if I had done absolutely NOTHING. But, last I checked, we can’t really know what the day is going to hold. The good news is that I held on to the vast majority of my positions, in spite of the market’s insane swings.

So I’m more nervous than ever now. My profits are absolutely sensational, and I am again tempted to just say “screw it” and shut down for the year, particularly in light of Wednesday. I daresay Powell and his cronies are freaking the hell out right now and will want to “accommodate” the stock market, which seems to be their Lord and Master now.

Of course, I hope whatever he sets out to do completely blows up in his face. It’ll be clear by the end of this week. Pray for me.

Mark This Post as a Favorite