Another day, another victory for the bulls. As I’m typing this, every single quote is bright green, and optimism has flooded the markets (and the press, as I showed with ZH last night). The 3800 Fibonacci has been shunted aside, and 3900 is within easy reach at this point, which would make for a nice trendline tag.
The sick-to-my-stomach feeling on October 13th makes sense now, because it marked a major Fibonacci support point (as I’ve pointed out before and after), pretty much to perfection. I will say, however, one glance at this weekly chart doesn’t have one iota of “new bull market” to it. This is yet another tiresome, let’s-get-through-this-in-one-piece counter-trend bounce.
Thank you for the kind words about my “long bonds” call yesterday. So far, so good.
As for my portfolio, “conservative” doesn’t even begin to describe it. I am over 50% cash (!!!!!!!!!!!!) which is a level I haven’t seen in years. I guess the easiest way to explain it is that, in this market, I still avoid being long, but I have no problem being “a lot less short.”
