You may notice this is the latest the diligent RAUL SANTOS blog has ever been updated with a stock market update for the upcoming week. Listen to me, Miami is a place of excess and is filled with more thrills than one man could ever possibly consume. You can shoot machine guns, race Lamborghinis up the highway, and listen to repetitive music 24-7 among thousands of other stark raving lunatics.
But this report is coming out late for a different reason entirely. I spent the entire day with a girl from Prague who has me entirely smitten. Her accent creates adorable versions of seemingly benign words like glove (pronounce: gloof). She is damn near 5’10 and has long buttery locks of blonde hair down past her shoulders. She snowboards and has a dark sense of humor that I surmise comes from a childhood inside the eastern bloc. We shopped for art and walked around Miami beach, stopping to enjoy a fresh lobster ceviche. Then we walked to Whole Food to buy cookies to enjoy on the beach while the sun was setting.
Despite our instant connection, she is dead set on moving back to Prague to open her own business. Therefore our fate as life-long lovers is unlikely since I have no intention of abandoning the murder mitten anytime soon. So spending gratuitous amounts of time with her while our lifelines briefly intersect takes priority over nearly everything.
But the model is the model is the model and after 159 consecutive weeks I would rather live in a lonely hole forever than compromise the integrity of the data. Therefore I have taken a sidebar to update all the metrics inside the system before what is certain to be a historic week.
Bitcoin futures are live on the CBOT. This is a huge change to the financial complex. And while it may seem cool to draw analysis from our new crypto friend and create assumptions on what it means for the overall market, we are better off sticking to our disciplines and letting them guide us—no ones master, no ones slave.
When all the figures were updated and the system fully calibrated, it returned the extreme Rose Colored Sunglasses signal for a third consecutive week. That means we are expecting indices to go nowhere. Maybe they take turns rallying and selling, much like we saw between the Dow and NASDAQ last week. We are not caring so much about any outsized moves, especially to the downside. And if I were not helplessly lusting over a rare blondie, I would be angling to find a way to buy any dip seen early in the week.
That does not mean you should go out and buy into any weakness next week—not without your own plan. For when the dominoes begin to fall, and I am trying on matching hats with my new special lady friend, you are going to feel your chair slowly start to heat up. And you’ll be after me, asking me to update you, and what my opinion is of the latest gyration. Which is fine, but also a recipe for disaster if you are using my park bench analysis as a primary driver in your decision process.
Miami is an absurd place where men deface exotic super cars with giant stickers of the monopoly man holding dollar-sign sacks. Girls with 5 million Instagram followers parade through everything with an entourage of cell-phone photographers, two who shine their phone lights while the third captures the moment. Teamwork and excess. Fifty bucks barely opens a club door and if Drake is in the house be ready to drop two hundred plus, per head. But, to be fair, in this town you get what you pay for and if you keep the fun notes rolling everyone is extremely nice to you.
In summary, I am a hopeless romantic struck in the city of envy and lust by cupid’s arrow who stepped aside to update the tried and true market model which is signalling a calm drift into a historic week in the stock market.
Exodus members, a truncated version of the Strategy Session is live. This is the 160th edition, go check it out!Comments »