This is distribution. The market has topped during late April. I wonder who said this would happen, almost to the exact day.
Stocks are, for lack of a better term, plunging lower. We are seeing losses strewn out, across the board, in a most heinous fashion. For the better part of the past two month’s homosexual giraffe’s have been running this market higher, based on the theory that men could indeed urinate, standing up, in the ladies room, and that QE would save the day, and that oil was bottoming, etc, etc, etc.
All of that was wrong, AND MORE.
Earnings have been an abomination. The very thing that is supposed to fuel stocks higher, will indeed crush them back to the February lows, and even lower.
TLT is trading higher again, now up more than 9% for 2016, by far the best performing asset class worth allocating into.
Dark, dark, even grim, days lie ahead. Brace yourselves for the storm to come.
NOTE: The iBankCoin Bootcamp schedule has been posted. I hope to see you all there.
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I remember when you called it, to watch out for the last week in April. I listened. I stayed in TLT and mostly cash. Thanks for the heads up. It’s much appreciated. Now, let’s hope the market does turn around for the better. We’ll be lucky to see 4% growth by the end of the year. I hope I’m wrong.
word of the day: insurmountable
Think about it. in sur mountable
word of the day
Senior, just today I have released the GLD puts I paid woefully for and used the proceeds to purchase a lot of SPY puts, July edition and yes they are quite out of the money. I am happy to say that I sold the puts this morning whilst GLD was at its lows of the day and bought the SPY puts at the SPY highs of the day. A feather in my cap for an otherwise ruinous trade.
I have also reboarded the ark as it was getting a tune-up just off the coast of Haiti. You know what they say, “When in Haiti, leave.” It wouldn’t surprise me to see the ark float once more, this time on the calm seas of a low 2% yield.
Things are so out of wack, in an irrational exuberance sort of way. I just wonder how long this BTFD keeps up. I just looked at the McClellan Summation Index and it’s up at a pretty high level. Stocks above their 40 Day moving average recently hit over 88%. The market could take a turn any day now. If long, tighten your stops, you know how fast the market can take weeks of gains in just a few days.