I was up 0.45%, with 11 out of 13 of my stocks higher for the day. When juxtaposed against market breadth of just 42% for the day, I think my model is working.
Today had all of the trimmings of risk aversion, high tech, high beta, stocks tossed into the fire, while gold, bonds, utilities and other mega cap defensive stocks were gobbled up by a risk averse Wall Street.
Crude oil down nearly 3% for the day is all you needed to see, with regards to where money isn’t going. Year to date, the carnage in the oil & gas industries have been absolutely dreadful — down in the magnitude of 35%.
With June here and seasonality working against stocks, you have every reason to get defensive. But we’re not going to crash in June. That never happens. Expect there to be some mean reversion opportunities, something, as you know, we’re keenly adept at identifying. We’re not there yet, but soon.
The broader indices mailed it in today, showing minimal losses. This is the problem I’ve had with the facade of the indices since 2014. They no longer accurately portray the true nature of the market. Agreed?
At any rate, until Friday, I will stick with my current portfolio, heavily focused on large cap stocks that produce ample free cash flow — hedged with cash and a little TLT/GLD.
The most important thing for you to know is that the animal spirits are NOT back, contrary to popular beliefs. If they were, small capped stocks would be outperforming and they’re down for the year — so there’s that.
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How long before CB’s and HFT platforms start front running Exodus?
Who is going to pay good money to a mathematician to program an algo to front run 5 four figure traders? Where’s the pay back?
Google search: vix manipulation zerohedge
Another rigged market: Scientific study finds systemic VIX auction manipulation, May 25, 2017
http://www.zerohedge.com/news/2017-05-25/another-rigged-market-scientific-study-finds-systemic-vix-auction-manipulation
From 2016:
“Gotta Love Manipulated Low Volume VIX Pushdown Rallies”
From 2015:
“Conspiracy Fact – VIX Manipulation Runs The Entire Market”
From 2014:
“VIX-Manipulating HFT Algo Is Booted From Dark Pool, Exposed”
If you think, the trip from 15 vix to 9.8, in the 5 sessions after the “impeachment drop” was Etf and Mutual fund Money?
YOU’RE A
F – U – C – K – I – N – G
moron
If someone came out of the casino telling me the craps table is rigged…
… then I would go inside and bet big against the shooter…
And win big.
50/50 in XIV/cash since Nov 4th. Rebalance monthly.
40%+ this year. Maybe more. Stopped checking. The elites control the show. They arent going to lose.
The streets of America can run red with blood and the vix is still going to zero.
Lol at the “Deem this to be “Fake News”” button. I’d submit a patent application on that before Trump does.
Utes at all-time highs and financials at near 6-month lows is cause for some concern since both sectors trade off of interest rate expectations in addition to corporate performance. Also, the 2s/10s Treasury interest spread is less than 1%, pointing to doubts about the economy being on solid footing and also doubts about the Trump agenda getting passed through Congress.
Credit defaults on the rise. The big reset is upon us. When the world has printed all it could and I’d at zero interest rate. The game is over. Amazon won. Now reset and start a new game.