Day’s End. Tomorrow’s Bloodbath.

Witness what remains of the market rally. You could not even manage to eke one day’s worth of gains.

All of the bull’s energy has gone into sustaining the prices. Every dollar they could muster was thrown to avoid the carnage of the worst days. Now, they are overexposed, and have nothing left to give.

I also do not believe that there are many bears, in a “I’m short, fuck you” sense of the phrase. I think there are many people who are bearish. Sure. But not many shorts to fry. The last 6 months has made sure of that.

Only a few of the more…dislodged…managed to stay short through this mindless rally. It takes a certain special kind of crazy to watch your own arm get ripped off and have the self-control to do nothing. I can’t say I enjoyed it, but it will be worth it before long.

But I’m willing to wager that, even here, very few people are “short”. I think most people are waiting for the trend to establish itself. Which probably means we have a -300 DOW day in store for us, as you usually do not have orderly short rebalancings.

I find myself long a great accumulation of ERY and SCO, as well as retaining a very small (<1%) position in the notorious TVIX. Long, I’m holding CCJ (getting smashed as is typical), AEC and CLP (both incredibly resilient). And of course, I own a lot of silver that I usually don’t talk about, mostly because sometimes I forget it’s even there.

Friends! Enemies! This is your last warning. Clear out, or be crushed.