Another 400 point rally. This is getting ridiculous. Over the last 6 months, both long and shorts have been whipsawed, by the ungodly turbulence. However, I must admit, as of late, the bulls seem to have the upper hand.
Naturally, lots of bad stuff can happen, such as egregious job loss or more earnings misses. However, it’s hard to ignore a market that just-won’t-die.
On the other hand, much of today’s rally is attributed to a new breed of short seller, via inverse ETF. Unlike old school bearshitters, the new bear is quick to cover and has little to no conviction. As a result, the market tends to rip off the heads of those who bet against it, whenever there is good news.
Going forward, I expect the market will make a lower high, at around 12,500.
But, maybe, just maybe, seasonality will allow for an extended rally, until May. If so, you’re going to want to get long some food and beverage names or tech.
For the day, I lost a massive 4.1%. However, I’ll have you know, my YTD gains are still more than 30%—so fuck off.
Off to drink myself stupid.If you enjoy the content at iBankCoin, please follow us on Twitter