Good morning, everyone. With the ceasefire ending tomorrow, everyone’s on the edge of their seat about What’s Next. In the meanwhile, the big event everyone was excited about was the President showing up on CNBC an hour before the opening bell this morning.
In our tail-wags-the-dog world, the “analysis” is directed toward seeing what’s happening in the betting markets and figuring that someone knows the news before everyone else does.
Thus, all eyes and ears were directed toward CNBC to see if he would make a major announcement of some kind.
It was supposed to be a twenty-minute interview, but I am typing this at the 40-minute mark, and the man is still talking about………..everything. He even mentioned fencing. I’m serious.
Anyway, I’ve marked with an arrow when the interview started, and as you can see, there was nothing meaningful offered to goose the markets.
I listened to the entire thing, and the President made it crystal clear that the stock market is the overarching metric by which all should be judged and measured. There’s no doubt he will move heaven and earth to keep equities propped up. It’s worth remembering. I think he follows the markets more closely than most folks here on Slope.
As for the loony-tunes Avis situation, it’s up again today, and I just read that the two funds behind the squeeze own more than 100% of the stock. I’m not sure how that works (something to do with equity swaps), but there’s no doubt that when this thing reaches its Wyle E. Coyote moment, the fall is going to be epic. But that’s only after every short has been laid waste.
My bearish disposition toward gold is working out so far. As I’m typing this, all the major equities (NONE of which I am short) are green, yet gold is off about forty bucks.
Thus, the gold miners (I’m short them) are slipping too.
I am also short GE Aerospace which had earnings this morning. It popped at first, but it lost those gains and is now down nicely. Good.
As we await the war news over the next 48 hours, keep a very close eye on Bitcoin. Bust above the dashed blue line, and the bulls are going to run assets higher across the board. Weaken away from it, and my spirits will brighten. It’s as simple as that.
The President is literally ending at the very moment I’m typing these words, so we can consider that interview in the history books now. Have a good day, Slopers!
