The week is over and America won.
Yes, things seemed dark just 2 mornings ago. I myself may have seemed pessimistic to outsiders.
But note well that there was always a contingency plan. We had our levels (1920 close) we drew colorful pictures so even the illiterate could understand the stakes. Dystopian Hellscape below 1920, butterflies and puppy kisses between 1920 and 1950. A close above 1950 confirms a double bottom (defeating the evil Head & Shoulders and bringing peace to Narnia and equities).
Yesterday we closed above 1950 by more than 1pt. Suddenly all ambiguous news is good (as long as you don’t own WTW). Hot GDP? Bring it. Election chaos? Just an American tradition (or does Hamilton not include all the sex scandal and Burr Presidency stuff?).
You’ve heard me say this before but it can’t be repeated too often: someday the world will end but it’s a crappy trade.
The war isn’t over but the week is. Unless the Bears make a huge, YUGE stand at the open financial media is going to be reduced to a series of fights over who is the most cautious in the near term but bullish over the long-haul. “We’ve had a heck of run, host. I’m not chasing this rally but I want to put money to work on dips”.
I’ll be popping in and out but, if we’re totally honest, trades made at the tail end of moves like this usually end in tears. DM me if we hit any of the levels listed below that aren’t “>1950”. I’ve got meetings then I might play some golf. We’ll talk about the hundreds of stocks that are still broken on Monday.
If you enjoy the content at iBankCoin, please follow us on Twitter
Yay ‘Merica – but this ain’t exactly a gap and go
It should be a boring day. That’s ideal. A little grind down to 1940ish and close flat would be perfect.
Hmm, exactly what happened.
Yup. Sometimes I’m good that way. Have a great weekend.
M just announced an additional 1.5 billion buyback. Guess that’s easier than bailing a sinking ship.
Just G20 hope of a Master Plan, which there isn’t any. May continue into the ECB meeting but that is a ship sailing too. IMHO a lot of people are going to get hurt buying into this rally over the last two days. Hope is not a good thing.