The NASDAQ is on pace for a +160 open and the Dow +400. Don’t gaze into the screen too hard, or you might get enamored with what you see and end up playing yourself back into the poorhouse. This is a rally of the reflex varietal. For a day, the good times are back. Trump is winning trade wars again. The bears are getting their dicks cut off. And, most importantly, we, as distinguished gents, get to enjoy profits on the long side.
Sec. Mnuchin is out with comments this morning.
“Markets tend to go too far in both directions,” he said, adding the U.S. economic story is “incredibly positive” and inflation is under control.
“The fundamentals are still very strong,” Mnuchin said. “The U.S. economy is strong. U.S. earnings are strong. I see this as just a natural correction after the markets were up a lot.”
There’s really “no new information in the market” on inflation, interest rates, or trade, he argued.
“[Trump] doesn’t feel that he has to attack at all,” Mnuchin said. “The president is concerned about the Fed raising interest rates too much and slowing down the economy. And those are, obviously, natural concerns.”
Powell is doing a “good job” at the Fed, Mnuchin said, adding Powell “understands the regulatory environment” around the financial industry. “We took bank regulations too far in the other direction” since the 2008 financial crisis.
I ran a poll last night on Twitter to see what people would do with a +100 Nasdaq open. Here were the results.
Proof that you people have no idea what you're doing. pic.twitter.com/VpkxaGSMIR
— The_Real_Fly (@The_Real_Fly) October 12, 2018
People literally don’t know what to do.
I’ll tell you what to do — be wary of the ‘retest the lowsFAGS.’ They’re relentless and always get their way. Three months from now we’ll look back upon this time as an ideal opportunity to buy cheaply. Right now, we’re in flux and unsure what the fuck is going on — ’tis the nature of markets.
Word of advice: don’t chase a +160 open and if you could book some short term gains — do it. We might jump on Monday too, so bear that in mind before you get back into the FAZ mobile, or one of your retarded VIX instruments.
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I would offer you all a ride in my FAZmobile but she’s headed back to the garage. Everything you saw this week was just a test. If it has been a real emergency, you would have been directed to the nearest building ledge and instructed to jump. This was only a test.