RUN FOR THE ARK; THE FLOODS ARE HERE

I realize TLT is down, off by 0.5% for the day. But it’s a whole of a lot better than owning LNKD in a margin account, isn’t it? There is still room on my ark, next to the buzzards and the beetles.

The Fed rate hike is BACK on the table, apparently. Thanks to this morning’s jobs numbers and comments out of Fed’s Mester yesterday, traders are selling their stocks and getting the hell out of dodge for one specific reason.

LACK OF FAITH.

On one hand, you look at the shares of LNKD, DATA, LGF,  CRM, GILD, AMZN and many others, and ponder if satan himself is controlling the price action on the NYSE. Then you spin around and see this idiotic 4.9% unemployment rate and people like Jim Paulsen get on the teevee and do the Fed’s bidding and conclude there isn’t a reason to be long stocks.

If the Fed is working against you in the market, get out of the market.

There’s an old saying: ‘Don’t fight the Fed.’ It applies to both a bull and a bear case. Right now, there is an overwhelming amount of evidence, suggestive that this Fed intends to reduce the value of equities, for reasons that escape this unlearned man about the internets.

All I can tell you now is that this sell-off isn’t done. The Fed has lost the confidence of the market. It is being led by a person who is tone deaf. And you should fear what you don’t understand.

 

The NASDAQ is off by 120.

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