We greet a brand-new day of General Bonespur’s Epstein Fury, and I am delighted to see a sea of red quotes.
Most indexes have cut below the panic lows of Sunday/Monday, and in spite of the market’s absolutely BIZARRE rally yesterday to levels that were seen before the war even started, all our bullish friends have had their clocks cleaned. Couldn’t happen to a nicer bunch.
Volatility has, as I predicted last week, become quite frisky again, pushing well into the 20s. Let’s get this to 60, eh? Meh. Won’t happen.
The only “safe haven” yesterday was precious metals, and even the fabled world of gold and silver has completely reversed. I’ve a bit mad at myself, because I like to trade price extremes and I was tempted to buy a ton of DUST (the leveraged bearish fund against gold miners) but I failed to do so out of fear.
And, while all this is going on, the bond market is falling to pieces, which naturally means interest rates are flying higher. The world is deciding that a failed republic maybe isn’t a great place to shove their cash for safekeeping.
Yet I must once again thank the multiply divorced and wretchedly haggard Pam Bondi for spitting in the face of the market gods with her Dow 50,000 rant, since that singlehandedly wiped over 2,000 points (or is it dollars?) off the beast.
My biggest winner, by far, is my EWY (South Korea) short, which is getting absolutely wrecked. Indeed, all the lifetime highs in Asian stocks are being exposed for their unchecked lunacy. Like I said, I love to short extremes.
More important that any of this, the massive distribution top of the S&P 500 futures might be nearing a support failure. If so, it’s game over, people.
With a record high debt approaching $40 trillion, a nation filled with people that hate each other, and by orders of magnitude the most incompetent and criminal administration in world history, the simple fact is that…….it isn’t easy being green.
