If you’re shorting stocks now, you might need to wait a while to see a profit. The market is running on hope, the Federal Reserve fueled rally that is seemingly endless. They have a printing press that they operate every morning and with that printing press, they use the money to buy everything. If something goes down, they buy it. If you’re a bank and have shitty bonds you can’t sell, you call them and they’ll buy it from you. Since they’re the Fed, there is no margin call and no one can ever made them sell. They have UNLIMITED MONEY, quite literally and there’s nothing you can say that changes that.
Is it fair?
No, but life isn’t fair.
What does it mean?
It means markets will remain upward trending until we get a catalyst that causes a DELUGE of selling, the sort of selling even the Fed can’t control. Right now the market is running on hope that the coronavirus will subside and everything will go back to normal. So normalization is being priced in, sort of, and many stocks are still down 50% the past month — even after the recent melt up.
Sure, we’ve bounced 20% off the lows — but we’re still WAY down, so put that into perspective.
Am I bullish?
For now. Things are changing fast and we’re getting monthly moves inside of a day. I sense the fear subsiding and I see people drinking the Kool-Aid. I’ve tasted it and it’s quite delicious. I will ebb back into stocks quietly and try not to get too crazy — but we’ve probably got a few days of rally left before the rug is pulled.
Look at how fucking stupid the Empire State Building looks now, a giant fucking siren on top of building to induce panic.
— Rita J. King (@RitaJKing) March 31, 2020
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