On a weird day, in a weird year, in a weird decade, folks were wondering what on Earth compelled all the equity markets, which were already at lifetime highs, to explode higher in the final hour yesterday. The explosion was universal, including the /ES…….
…..and the /RTY………(both blowouts in rectangles, on the left, whereas the slow fade has, mercifully, been taking place ever since).
Since the media has to have SOME reason for moves, the reason offered was “The government thought it would need to borrow another trillion dollars to fund itself, but it didn’t need quite that much.”
Yes, that’s right. Our enfeebled nation, already $34 trillion in debt, had a national celebration because the sheer speed of its desperation consumption of fiscal fuel was a little bit lower than feared. It would be the equivalent of finding out your severely alcoholic friend had six shots at the bar last night, and you thought he would have seven, so you decided to have a party about it.
The whole reaction speaks volumes.
Even the semiconductor index, which roared higher last night after hours thanks to the risible blow-out with SMCI, has felt the fade. Its after-hours completion of its saucer has already been neutralized, and the market isn’t even open yet.
And, miracle of miracles, basic setups continue to work. I mentioned on my show yesterday, without even knowing that UPS was going to have earnings, that UPS looked like a good short-sale.
Well, earnings are indeed out, and the stock is puking all over itself. It’s glorious.
Contrarian indicators are lighting up all over the place, including the always-on-the-tee-vee and awfully light-in-the-loafers chap below who, at the risk of exciting him by way of a first syllable, will hopefully meet his comeuppance.
Even your beleaguered host has been falling under the spell. Just yesterday, I did a second premium post in the span of three days about all the stocks I think I should be buying (yes, buying) and keeping my so-called portfolio to an absurdly tiny, risk-average, shaking-in-my-boots quantity of 3 positions.
Most notable of all, my acquisition of the most bullish words on the planet, WallOfWorry.com (whose acquisition yielded one of my most-liked tweets ever) has got to be some sort of cosmic signal.
All I want, as a contrarian, is a clear sign that fighting the crowd still works. How about cause the inexplicable downfall of Taylor Swift? I’ve got nothing against her, but someone who has rocketed to bigger-than-Jesus levels of adulation (to say nothing of being made Person of the Year) SERIOUSLY has to have some kind of amazing downfall for the human narrative to keep working. Will she become a terrorist like Patty Hearst? A mass murderer? Be abducted during the SuperBowl while they’re doing a close-up of her and her absurdly overly-lipsticked and gaping-open-like-a-blowup-doll mouth? Because this level of Cover Curse is something that should terrify her.
