I’ve mentioned in recent weeks my uneasiness with the surge in paid subscriptions, since I’ve seen this movie before – – – if the market sells off really hard, THEN people show up wanting bear ideas, often when the selloff is just about over. This morning I got a cancellation notice (I read every single one) and I noticed immediately how short-lived this “Foul Weather Friend” stuck around (I have blotted out the name as a courtesy, since my objective is to make a point and not “out” the person):
I’ve tinted the bar where he subscribed. That was in the throes of the selloff. Since the market has done precisely DICK since then, I guess he just gave up (concluding, as shown above, it is “clearly not a bear market“). Now that’s what I call paper hands!
In any case, who knows, maybe he’s right. But, as a chartist, I can at least say that – — if the chart above isn’t convincing enough – – there has been no sea-change in the market’s direction indicating that the handful of weak days we had last month has miraculously paid for all the sins of the past thirteen years.