Have you ever tried to hit a knuckleball? It looks so easy, until you swing at it and the bottom falls out, leaving you flailing at it like a fucking retarded ape. The market is showing you TLT, then punching you in the face for buying stocks. Does that make any sense?
Of course not.
The homebuilders saw an early spike off encouraging data–then it was sold to you.
I hate to say it, but the market isn’t exactly accommodative right now and conditions may get worse. Don’t get me wrong. I go to work with a full chest, absolutely confident that the Federal Reserve has escutcheoned the market against the free market evils that lurk around the corner. We all want to eat cake and steak, yet still maintain a perfect body fat ratio.
The truth is a little more severe than you might have imagined. If you sit down with a pad and pencil, have a good smoke from your trusted pipe, and do the math: you will not like what you see. Some think the market is living on borrowed time. I think the economy is already dead and the market is living the zombie lifestyle–eating the faces of those who bet against it.
Have a sense of humor about these things, otherwise the troubles of the world will make you miserable.
In the meantime, there is money to be made. I have to anticipate the markets next move. My gut says I should be selling into August strength and prepare for a “september slide.”
Until then, my top picks are EXK, MRVL, VHC, DECK and CTRP.
NOTE: In case you lost sleep over it, YES, I did fix my iPAD.