There are three looming events this week. The first, happening now, is a trio of special elections which will act as a political referendum on the new administration. The notion that a quarter billion dollars would be spent on a single seat in a small state’s supreme court is astonishing, but that’s the world we live in. The second happens tomorrow, which is when all the tariffs ostensibly kick in. Third, there’s the jobs report on Friday before the opening bell.
In the meanwhile, let’s look at a few charts. The first, EFA, has a clean gap at 82.29. It’s amazing to me that this fund, which represents worldwide equities outside North America, was at its highest point in the history of humankind just days ago. Anyway, I just shorted a big block with a stop at 82.35.
Here’s the longer view, illustrating the broken wedge.
Gold, may God bless it, continues to rocket to its latest lifetime high. It’s astonishing how this thing doesn’t even bother for a breather.
Silver, in sharp contrast, has been absolutely sucking donkey relative to its stronger and much more expensive big brother. Yes, silver is sorta-kinda getting dragged more or less higher with gold, but this is dismal performance. Gold is achieving never-before-seen prices where silver isn’t even able to best its peak from earlier this year.
All of which is to say that if gold even starts thinking about weakening, you can expect silver to poop its Pampers.
I remain fairly aggressively positioned, with a total of nineteen bearish positions and a particular emphasis on XOP, the oil/gas beast which has been quite stubborn until just recently. Here’s hoping crude oil softens up, which will allow XOP to absolutely swoon lower.
