To be continued. The bulls escaped what should have been a 1929 style rout today, on the backs of that fucked up housing number. Get this folks: housing is at a fresh new low, yet here we are making believe shit is good, based solely upon the stock prices. Huh?!?
Since when has the market been a good forward looking indicator? Do not be tricked by the tricksters with chocolate bars in their side pockets.
Put aside the price action for a minute and recognize what’s going on. Have a moment of clarity, while enjoying the serenity of life, over an OVERSIZED mug filled with Monster Energy Soda. Things are getting worse. I was on board, 100%, just a few months ago. I based my bullish thesis on low inventory levels and a “normalization” of earnings. However, since then, things have taken a fucking turn for the worse, AND MORE. The entirely of the South East and Gulf of Mexico is in danger of becoming America’s “Deadlands.” You cannot simply ignore these headwinds and expect good results.
Until better data, I will remain light in equities, heavy in cash, and light in shorts. Remember, my goal is not to make a killing selling short. I am only interested in preservation of capital, coupled with a little growth. On a personal level, I am balls to the wall short. As a matter of fact, and this might draw a good deal of criticism, should the market go against me: I am 100% short, no cash.
[youtube:http://www.youtube.com/watch?v=Gpgy9IA4mKE&feature=youtube_gdata 616 500]Indeud.
[youtube:http://www.youtube.com/watch?v=pyYcB9AUMmU 616 500] Comments »