
Houseflation

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The human predilection for big round numbers is unceasing. On Friday, when the Dow crossed 50,000 (see all those big round numbers??) for the first time ever, the cult distributed this:
In contrast to my earlier “Unleashed” post, these are open short positions which are on a very tight leash. In other words, I don’t trust them quite as much as the other set, so I’ve got a tight stop-loss on them all. All the same, I like the patterns enough to have them as live positions.

Here are a dozen charts of live short positions which I am confident will be A-OK, even with the quadruple-digit rally on Friday. These patterns are large, powerful, and ready to take on the bulls!

It is my fervent wish that the mega-rally we saw on Friday will be remembered as a fantastic bull trap. Some of the big ETFs suggest that it will be.
The first chart, that of the Dow 30 ETF, has not a single bearish thing about it. This is a clean breakout to lifetime highs.
