Netflix isn’t going to save you.
Over the past few trading days, the entire investing world has flipped completely bullish, so much so that even my beloved Slope has become infested with its own version of yellow jackets, which are the $0-paying freeloaders who declare that the bear market is dead and it’s going to be straight up, at the very least, through the end of the year. These people, to me, are as complicit as the criminals they got us here in the first place. They are Fed cheerleaders, and it’s clear to me just how few true bears there are here. Probably something like five, grand total. So it isn’t just me. There are four others. Tops.
Given the NFLX, ISRG, and UAL fodder these closet permabulls were given last night, I’m sure they were expecting the /ES to be up another triple digits this morning, but things seem to be sputtering already. “Up through end of December” my ass.
What’s apparent to me is how range-bound the market is right now. On the one hand, there are people here, sort of the Dave Portnoys of Slope, who are convinced that all the excesses have been washed out of the system and that stocks are cheap. It takes literally just an hour or two of up-moves in the market to convince them they are right.
Yet if you look at recent weeks, not only is ~3800 representing important resistance, but the bullish bastards out in force weren’t even able to match recent highs. Their efforts are starting to become flaccid, in spite of the fact that 99.99999999999% of the population is cheering them on, fecklessly and ignorantly supporting this circus.
And even more cleanly-defined range can be seen in the small caps, which has been ping-ponging between predictable levels for weeks. The next goal will be to cut through the midline of support, emphasized in green. At that point, Slope’s yellow jackets will fall mysteriously silent (or, more likely, pretend to be “flexible” and claim they went short at exactly the right time).
The NASDAQ is an even more powerful example of how, beneath the surface, the market is continuing to fail and falter. Each attempt to reclaim the idiotic glory of spring 2020 is getting more embarrassing, as the steady series of lower highs paints itself out on the tape.
Finally, and most dramatically, is the bond market. This cannot find a bid, as the people of Earth have decided that loaning money to a failing country that is $31 trillion in debt isn’t such a bright idea. Added to which, I strongly suspect that three weeks from this very moment, we are going to wake up to see that some of the dumbest humans walking the planet have actually been elected to the U.S. Senate, which will sort of tell you everything you need to know about how doomed our once-great republic is.
I am coming into the day somewhat lighter than I wish – – 19.1% cash – – and I blame the yellow jackets here for scaring me out of some good positions. Yep, it’s your fault. Shame on you!
In any event, the glory days of NFLX are in the rear view mirror, and this pop that we’re seen is just another of what will be thousands and thousands of instances in which a stock was down 80%, but now it’s down “only” 75%, so on a relative basis, the one-day percentage move seems absolutely dick-stiffening. But it’s all an illusion. These are nothing more than death rattles.
I shall end my radiant sunshine at this point and go walk my dogs and grit my teeth of the thought of the yellow jackets that continue to poison my beautiful 17-year project called the Slope of Hope. You really should just amble over to Yahoo Finance, which is more your scene.
