Well, ain’t that just typical?
Yesterday, we seem to have reached some kind of psychological breaking point. Bears were throwing in the towel left and right. Some of the most stalwart bears here on Slope were publicly expressing chagrin at their steadfast positioning. And multiple people cited some old man I’ve never heard of who was declaring that the Whaley Thrusting Humping Pattern or some-such thing had signaled a New Bull Market, and the signal had never failed.
Uh-huh. Just like the ZH post two days ago that presented (to its premium members) that the CPI would be a huge negative miss, and its predictive basis hadn’t failed for the past ten instances. (Spoiler alert: it failed). I don’t know anything about the Whaley Thrusting Humping indicator, or whatever it is people have embraced, but the idea that this is a new bull market is utterly risible, yet easy to accept, since it is human nature to be a permabull instead of a freak of nature like your humble host.
Having said all that, I’m not immune to shameless cowardice, and by day’s end, I had a pitiful 28% cash balance in my account, having endured several days of horrid buying in the market, coupled with the fact that we’ve been more-or-less in an upswing for precisely three months now. I am heartened, however, in spite of my feeble, limp-wristed, and timid positioning to see that the earnings season is being greeted with some much-needed red.
As these giants tumble in the wee hours of the morning, the selling is flowing into the market in general, with equity futures down about 1% or so across the board.
What’s exciting is that after the yet-another-damned-market-holiday is over on Monday, earnings season REALLY kicks in, and we can focus in on classic information such as, ya know, corporate fundamentals, instead of slavering over the grotesque nonsense that the federal government squeezes out. It’ll be a nice change from crap like FOMC meetings and CPI data.
