Have you ever heard of the phrase ‘blow off top?’
In terrific fashion, markets reversed higher this morning following moderate losses. After the rogue degeneracy of small capped traders was laid bare in front of the world to see, the muppet masters pulled the rug and we’re now descending into hell.
I will reiterate my position that the correct trade is to sell here. Timing tops is a very hard thing to do, much more than bottoms. Despair and fear are actionable against because they dissipate and are counter to the basic human emotion that is optimism. Trying to time tops, however, is equal to knowing when a sociopath with stop making friends, a whore pulling new tricks or a savage army of zealots deciding to make peace. Betting against human excess and their right to MOAR is hard. That’s my point.
Nevertheless, and I hate to sound cliche here, but no one ever got hurt taking profits or leaving the party early. You can, however, find yourselves in grave danger waiting until the end of the party, when all of the drunkards quarrel with one another, trying to shoot each other in the face for stepping on each other’s shoes.
I’d be a net seller here in every way imaginable, save treasuries.
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