Well, the nauseating, feckless milksops known as equity bulls are getting burned, and God knows no one deserves it more. What’s particularly galling is that the narcissistic Cathie Wood declared stocks in “deep value territory” this weekend, even though the S&P 500 was at the most overpriced level in human history on goddamned Thursday. So, yeah, Cathie, I think those neck cream vapors are beginning to affect your already spurious thinking.
I’m delighted to report that the SPY has broken its lower trendline. It’s over folks. Jerome Powell is doomed, as are his mewing, sycophantic followers.
The failure of the small caps is particularly lovely, as the triple-leveraged ETF breaks below is well-formed right triangle pattern.
It’s funny that I’ve been going on and on about how utterly screwed energy is and yet had no positions. I tried to tell everyone here, to little effect, that there would be no recovery in energy. The world economic, debt-choked and dying, is NOT going to be gobbling up energy. Things are going to sputter and wheeze to a grey grind. The notion that energy has a bright future is preposterous to the point of the implausible.
I’m weary of highlighting individual short positions, because pretty much everything is facing ruination. My job is to try to highlight the most wretched of them. For instance, a month ago I told my beloved premium readers to short toilet paper (AKA International Paper, symbol IP). This, too, has been embraced by the market gods.
There is no ethnic or religious group persecuted to the degree that equity bears are, so let me hold a goblet high and toast this day, since persistent diminishments in stock prices are as rare as hen’s teeth. Chuck will join our toast with a rendition of an apt song.