All of the ingredients are present for a pause, or slight resumption of the previous bear market. Remember, during the 2011 debacle, stocks fell 17%, bounced 11% — then dissipated by 3.5% over the next two months before taking off. After last month’s orgy of buying, at a minimum, we’re overdue some consolidation.
What does this mean?
It means you might need to sell immediately, irrespective of whether you’re up or not. Your cost basis doesn’t matter — bozo — move to cash.
I’ll be taking my own advice this morning — especially with crude and treasury yields dropping. My largest position is NUGT now — which should run a negative correlation to the market — on the cusp, on the bubble, on the verge, of breaking — the fuck — higher.
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