I was out of pocket most of the day, running around doing chores. After reviewing the day’s trade, it can only be described as profoundly bullish. With 80% of stocks higher and all sectors in the green, it was a classic melt up day. My bubble basket filled with shit stocks was up 3% for the day, while my GARP index was higher by 1.7%.
For the week, both semis and banks were strong. This is especially important when taking into consideration how dreadful retail has been. Logically, it makes no sense for semis to rally if the consumer’s jaw has been dislocated from his fucking face.
A wide swath of biotechs pressed higher by 10% for the week, also suggestive of a market with a bullish bias.
On the downside were REITs, gold, fucking meat stocks, restaurants, copper, casinos and steel/iron. Empirically, this week was marked by a fear that the Fed would raise rates, which hurt anything with yield, such as bonds, REITs, utilities etc. Also, investors extrapolated that higher rates could be invective towards inflation hedges, asserting a King Dollar policy upon the marketplace. As such, China, gold, bonds, oil, retail and anything or anyone sensitive to carrying costs were sold.
This narrative should spell doom for equity markets. As a matter of fact, stocks closed down for the 4th consecutive week, the first time since 2014.
In short, today’s rally was super impressive, almost too perfect. Nothing traded down, not even TLT. The jury is still out as to the near term direction of the market. Moreover, I have a very hard and pernicious bend to my bias.
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It truly was a marvelous day and I reveled in every minute of it.
It was later revealed that you reveled in shit.
I reveled that you revealed that he is reviled.
The entire thing was a revelation.
You are correct in your assessment, as you have been for months, provided the market is not pricing in the possibly of QE4 on a global scale as the final trump card before the hubris of global central bank academia is forced to meet reality via market rejection.
The VIXs action today was one of the only days since February from futures to ETFs to show any form of resistance or unacceptance via subdued price action to the inevitable reality of another obvious vertical day in index futures. This started from the overnight session until imploding, as it usually does, within the last hour of trading.
There should absolutely be doom but the market will not allow it, yet. The world is too fucked up to have markets show nothing more than a few of 100bps+ down days over the last two months, and a dozen unbroken 45 degree pure green updays.
Still far too many dip buyers. Been the only way to stay competitive in the business, and the long only crowd has no other choice. Average investor too uninformed to know the glaring shitstorm and hedge or go cash. Big money has no choice but to remain invested long.
If markets don’t fall into the abyss in less than one month markets will rip higher. This will be soul eroding for shorts, myself included, for a year until hopefully someone with money left makes a fortune off the vix at 8.
Good luck. Last weeks charts look identical to an EKG during a heart attack but this kinda shit means nothing these days.
Footlocker traded down
Regards
Chuck Bennett
I assume you meant to post to this thread: http://ibankcoin.com/flyblog/2016/05/20/the-nba-is-a-generational-short-and-so-is-footlocker/
@Fly. A perfectly bullish day, but you still cannot toss the bear hat just yet. Is that the message? A bit confounding.
My read was that this market is still fucked beyond belief.
And what happened to VR as Le Fly pictures? Not so much in the headlines these days, which seem primed for Christmas?