This Sell Off is Filled With Shit — But I Sold Anyway

End of year business. Men do not want to risk it all — just for another percent or two. Make no mistake, this sell off is stupid. The rationale, based on manufacturing data, is laughable.

Manufacturing activity in the U.S. continued to contract last month, the Institute for Supply Management said. The ISM Manufacturing PMI dipped to 48.1 in November. That’s below an estimate of 49.4. Stocks hit their session lows after the data was released.

But there is much to lose for managers who rely upon the calendar year to get paid — so they will most assuredly be selling into any fear. Taking a quick gander at the market, there is an overabundance of it now. Consider the fact that low brow biotech hand grenades were the leading sector into today and now look at SAAS, -3.8% for the session.

Here’s the other thing that makes no sense — the dollar is getting smashed and bond yields soaring, +5bps on the 10yr. So both bonds and stocks are getting lit, but oil is up. Try to figure that out. You’d think gold would be up, but it’s not — down. But gold miners are UP. Confused yet? It’s by design.

When markets get confusing like this, at the same time I see high beta stocks getting routed, I step aside.

I am now 95% cash in my trading. My Quant has bee liquidated, aside from a few stocks, and will be re-allocated later on today, with a new stratagem.