Today’s breakdown will produce wretched technicals and that will affect investor psyche, causing stocks to tailspin lower for the balance of January.
This is my god damned channel and I’m sticking to it.
The fulcrum of losses will be enjoyed in semis and oil. As such, I am long DRIP and SOXS. I also took a position in LABD today, betting on a decline in biotechs.
Another area of concern is government bonds. We have US yields plunging lower, as people take flight into the ark. Unbelievably, over in Europe, the PIGS are diverging from stronger Euro countries like Germany and Switzerland.
Again, in the US, the 10yr bond is lower by an astounding 8BPS to 2.58%.
What does that mean? It simply is a measure of stress. There are liquidity concerns, as evidenced by last night’s 3% move in the Yen.
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nice post
Bear trap
As I have said before just keep buying OIH (oil services etf) and the small cap etfs (IWM,IJR).
Put the limit orders in and then go ride a bike, play tennis, go to the beach and most importantly get the head out of the computer.
Fly, could be on your bearish channel. The alternate mid-term view is a possible bullish pattern forming: https://www.tradingview.com/x/C3tHbqgi/ Back at daytrading the volatile days again for great fun so I don’t care where this goes. For now long SPY from today’s bottom protecting gains.
Yup, still down for the long term.
One intersting note: who the hell would buy a Spanish bond over a US one paying more? Sure, the EU is backing it – until they don’t.
Instead of propping up the Spanish bond prices, the EU actions should be lowering Germany’s bonds.
Typical. The Germans haven’t been yielding much anyway. I swear they could squeeze a penny out of a nickel payment and the payee wouldn’t notice. Just a family joke.
I like your god damned channel.
Fly, why is it a surprise that Spanish yields are higher than German? Wouldn’t it play into the narrative that there’s a flight to safety (ie German bonds being bid up, and dropping its yield)? Simply asking for education purposes; no troll. Hope you and yours enjoyed your holidays and happy new year.