Jerk.

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What an insane week it has been, and it’s not even over yet! And, as I suspect most of you know already, there’s yet another surprise that just rolled out (it’s Huawei again):

downitgoes

But let’s take a step back and look at the ES a little longer-term. I’ve tinted three zones. The green one is the everything-is-peachy zone, and I think now that the China/US trade war is fully on, we’re past that. Next is the caution zone, where we are at once again. The insane rally since the lows on Monday have put us here. And the magenta area shows the panic zone, where the US Government once again saved the day and bid equities higher.

zones

Thursday was the first lousy day for me in a while, although it would have been a lot worse had I not lightened up considerably. I had as many as 70 shorts earlier this week, and this morning I was down to 25. I have pushed that back up to 43 short positions with 54 waiting in the wings. And, importantly, I think we’re in a stock-picker’s market again. Indeed, one of my shorts (DXC) is having a nice after-hours tumble:

dxc

No one even thought about the USD/CNY for years, but now it’s become a nightly obsession. Anyway, I think the enormous push of about 1300 Dow points (in just a matter of a couple of days!!) was utterly baseless and merely presents another shorting opportunity. Friday should be another interesting session, to say the least.