Ready for another day of battle, everyone? I sure am. Equities are GREEN across the board this morning, but I think the setup is as plain as day. Here’s the /NQ futures, which are supporting the same important resistance line as just about everything else out there.
At the same time, bonds have been zig-zagging their way lower for days, and weeks, and months, and years. It’s astonishing that we’re approaching Year Four of the bond bear market. Doesn’t it seem comic that during the Covid nonsense that interest rates were actually NEGATIVE? What a joke.
My portfolio construction is the same: 12 bearish positions, 1 bullish position. I’m trying to keep on my toes, however, since the downdraft is getting a bit long in the tooth, as illustrated by this gorgeous sinewave overlaid on the /RTY futures. Beautiful, isn’t it?
My two monster positions are XLU (long) and SMH (short). I’ve definitely got a target in mind for XLU, and I’m a little more skittish about SMH, due to the aforementioned long-in-the-tooth-ness. Good luck out there!
