So………how’s Phase 2 going?
I kid, I kid! Isn’t it deliciously ironic, though, that within weeks of the ridiculous “Phase 1” charade of a Chinese deal, that the source of the most brutal beat-down in years has been………..China?
Perhaps you’ve heard Mnuchin is screeching that China has to keep up their part of the deal. Can’t you just picture this nasal-voiced, mama’s-boy weasel doing this during a crisis? What a dickwad.
But we’re not here to talk about Mnuchin. We’re here to figure out what the hell to do with the best pre-opening since 2008. And I’ll save you the tension by telling you early on: hell if I know.
I will say I am well-positioned. I literally could not be any shorter. In fact, my broker covered a few shares before the close on Friday to keep me within margin requirements. I had no money left to do any more shorting. So, it’s a good thing.
As you well know, my holy trio is long bonds, long gold, and short equities. Recently, this kind of threesome should create a dramatic scene of me with the wind blowing through my hair and strings swelling in the background. Gold has been raging………
……..and bonds have not only been spectacular, but they are approaching an even more important breakout level, at lifetime highs, no less.
What concerns me, obviously, is what that bastard Jerome Powell or that cocaine-addled lap-dog Larry Kudlow is going to say or do about this little crisis. As we’ve seen time and time again, these kinds of people, if I can even use that term, will sell their own children from their multiple marriages to keep this ridiculous market propped up. And we know what good prices children are getting these days, so it can feel hazardous being in my shoes.
The VIX could easily double top today. It has already reached the level I was hoping in my “Numb Nation” post.
After all, check out what happened last time we had an important technical break.
I’ve said it before, and I’ll say it now: the one thing that stinks about victories like this is that they don’t last forever. Hell, I’d love to see the Dow at negative 83,392 if it was possible, but it isn’t. We might find ourselves at an intermediate term low within moments of the opening bell. I’ll probably have to grit my teeth this morning and cover some of my sweet, beloved positions.
But it’s important we keep our wits about us. Logic and reason got us here, and logic and reason will preserve us. One position at a time.