Markets Cruise Into Memorial Day Weekend; The Ark Still Floats

TLT is up almost 3% for the month and 9% for the year, making it the best performing asset class next to gold for 2016. Only mentally ill person’s with behavioral issues short stocks into hot dog and hamburger weekend aka Memorial Day. It’s important that we recognize the market for what it’s doing and not what we want it to do. For the most part, it has gone nowhere for 2016. The SPY is up 3% and the Nasdaq is off by 2% for 2016, hardly a ringing endorsement for equity longs.

Since the February bottom, many sectors have raced higher, ingratiating many timely traders with big gains. But if you’ve been tracking your investments through monthly statements or logging online once per quarter to see the balance, 2016 has been one giant circle jerk.

My position has been consistant from January the 1st, 2016, until now. Markets are bounded by the debt in the oil and gas sector and the ineptitude of the retail industry to siphon money out from the pockets of a miserably miserly consumer. None of these issues have been resolved just yet. Although crude at $50 is far better than $25, it doesn’t alleviate the debt burden that looms for scores of underprivileged energy companies, who will face this issue, in earnest, starting 2017.

Other than that, the whole negative rates scenario has left a bad taste in my mouth, regarding the health of the banking system. I’d much rather buy dips, via Exodus, and stay long TLT until the yield curve inverts.

Nevertheless, it was a do-nothing day, some might call it a solid and useful consolidation day, holding the gains enjoyed over the past week. I expect more of the same tomorrow, followed up with rampant selling by mid to late next week.