Happy new week, everyone. Had I been awake watching the /ES at midnight in the early morning hours, I would have been quite excited, because for the third weekend in a row, it decided to once again start plunging at precisely midnight, shaking off all prior gains. This time, however, the news that a bank no one has heard of (First Citizens) is acquiring the failed bank that likewise no one has heard of until a few weeks ago (Silicon Valley Bank) has convinced everyone that everything is fixed. Trash like First Republic (FRC) is flying higher. You can witness its Everything Is Awesome rally below, if your eyes are sharp enough:
Thus, safe havens like gold have instantly lost their luster (again).
I’m glad I lightened up on Friday. I closed out all my personal positions Friday morning, and am 100% cash, and in my big account, I shed some of the more profitable financial stocks. There are probably three or four items in there that would have been prudent to shuck as well, but I’ve got to respect my timeframe: that is to say, it is measured in months, not minutes.
The point I’m trying to make is that the /ES, shown below, looks remarkably well-poised to resume weakness in short order.
I would also hasten to point out that the /NQ is mashed right up against a major Fibonacci level, which has proved to be reliable resistance.
One last chart for you, which is the Leading Economic Indicators. As you can see, the path and momentum of the present-day economy bear a striking resemblance to 2008. For those permabulls (which on Slope are legion) who declare 2023 isn’t going to be like 2008, I’ll have to confess, you’re right. It’s going to be far worse.
