TRAPPED IN THE ‘FAGBOX’

In the context of the greater move that was just made off the lows, this is normal pin action. We now have indecision in the tape, as people figure out how to navigate between being permanently bullish and dodging earnings minefields.

I dubbed the term “fag box” more than a decade ago to eloquently describe being trapped in a trading range without purpose. We are just sort of drifting out into space wondering how this all plays out. I will tell you exactly how it plays out, with markets shooting the fuck higher. But before we get there, we might have some brief sojourns lower and estimable scares along the way.

Bear in mind, America still has currency reserve status and whilst we have it, it is impossible to dislodge markets for any extended periods of time.

That said, we are trading here and this isn’t a blog about macro events or long term holds. In the immediate term, I suspect we drift up. The tape is very boring and in my experience when shorting boring tapes, bears are typically enlivened by the scent of their flesh being scorched alive.