The metals are breaking down, quite aggressively, as the indices goose step higher. I know it’s practically illegal to discuss the prospect of a pullback, amidst Ben Bernanke’s QE2 programme [sic]; but it’s gonna happen one way or another. On the other side of the coin, tech stocks are offering leadership, after getting kicked in the nose, all summer long.
With the Bank of Japan resisting the efforts of China to strengthen the Yen, I find it interesting that no one is talking about that. After all, the recent climb in Yen was attributed to China allocating capital into Japanese debt, no? I mean, China benefits from a strong Yen on many levels, yes?
All of this shit makes my head hurt. It’s too much. All I know is stocks do not go up in a straight line, nor do they go down forever. Even when things looked so bad I wanted to vomit on my short positions (despite profiting immensely) in 2008, stocks rallied. Even during the dot com bubble, people lost money during sharp profit taking sessions. Trust me when I tell you: they were sharp indeud.
I’m frustrated because I missed out on the second half of this recent run. I caught the bottom; but then I stepped out and hedged. But what exactly do you expect from a person who is intent on catching tops and bottoms? It’s bound to get messy.
Like I said yesterday, I have more than 50% of assets in cash and will average down, one final time, in both TZA and VXX. However, the market is not talking to me yet, so I haven’t done anything. There really is no sense of urgency, especially when the volume is light and the moves are methodical. I’m better off watching Honeymooner re-runs, than attempting to fade this market. Hypothetically, should the market pullback and close lower 30 points, I would laugh at that. I am waiting for a sell off with meat on its bones, so that I might take a nibble. Until that happens, I will be busy partaking in the arts of passive money management.
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