This is what dreams are made of. Never ending spiraling higher stock markets, spearheaded by calamitous news. If markets can go up on this news flow, imagine what it’ll do when the economy is pistol whipping hot under President H. Clinton.
In what can only be described as miraculous, America inherited an Asian oil rout and flipped it to a rally. Brent crude is essentially unchanged for the day and the Dow broke 18,000 to the upside.
As for me, my positions remain intact: short XLE, long TLT. It was a bad day for Senor Tropicana, as I am feeling the brunt of being fully exposed to the short side of big oil. Nevertheless, I am a patient man and I have time to kill before I cover my shorts. Plus anyway, a bad day used to mean -6% for the day, with my old style. Being down 1% or so is like having to deal with the emotional turmoil of tossing one of my readers into shark infested waters and then presiding over their expeditious and gruesome extermination. It’s not really that big a deal.
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