We’ve had it good the past few weeks, but not today. Today we’re reverting back to the pre-rally days of bidless tapes. Even the commodity trade is under pressure — as all assets sans select REITs collapse into what seems to be a maelstrom of panic in the bond markets.
The US 10yr is over 2.55% and the curve is inverted like hell — yet bank stocks aren’t panicked lower and this selloff, although not helpful, is orderly.
The NASDAQ is down 287, led lower by semis off by 4%. I had hoped for safe haven in commodities but that too proved too risky for the allocatoors. I gave up my early gains of +70bps and now am lower by 50bps, with 58% cash and 15% of my holdings in TZA. My bias is, presently, to the downside — although I am reticent to suggest there is much more we could tank today. Tomorrow we can gather some fresh tomatoes into our faces; but to ask for more than 300 NASDAQs of selling in a single day is a bit much.
For the balance of the day I will keep monitoring the movers and after 2:30pm begin an allocation for tomorrow’s open. In hindsight, I should’ve sold everything at the open — but again fell victim to aspirational thinking. This is the malady I faced in much of second half 2021, always looking for more, always believing in the hype.
The truth is, it’s over.
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Tomatoes in our faces…stealing that, gracias
Good evening iBankcoin, I am Mr Devil Dog, of the DevilDog corporation. The news is worse than terrible, bankruptcies await, and you are going to die. Yes – even LeFly agrees with me. This recent bear rally in stocks has been a trap of gargantuan proportions, and now the Federal Reserve is going to crash stocks leaving you holding the bag. Put simply, you have been stupid and greedy – gorging on a buffet of over-priced assets, and now the bill is due. I expect the stocked market to fall 90% before careening lower to it’s inevitable target of zero. Adieu.