iBankCoin

The January Effect LOOMS

So this is the real last trading day of the year, no? Come Monday, everyone will be eating shrimp cocked tails and getting drunk, gratuitously, off champagne. Then we barrel into 2019, very fat, and greasy, begging for an extreme beatdown.

It is my belief, frankly, this rally will not hold. It is my belief, come next week, markets are going to scream lower.

Naturally, I’ll remain open minded to the possibility that stocks can trade up, especially since we’re down so much. After all, a mean reversion spike doesn’t mean we’re in a new bull market. But I do believe the first week of January is a ritualistic time for stocks and it bodes poorly for portly bulls.

What to do?

Cash up. Position in bonds, gold — hedge yourselves.

Watch WTI and HYG and do not hold a lot of long exposure if HYG goes red.

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3 comments

  1. ferd

    bcs looks like a swing buy …europe all fixed

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  2. numbersgame

    Cahrts on my longs all looked bad, so i sold them all. Not coincidentally, HYG just went red.

    Bye-bye NFLX – make me some money

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