It’s heartening to see the stuffing being knocked out of the Nasdaq. Friday and Monday morning started it all, and we had our Gartman rally followed by a “Trump-is-hosed” resumption. The real question, of course, will be whether we take out recent lows. I’ll let you guess which side I’m cheering for.
Crude oil is where my heart belongs and I’ve been wringing my hands the entire way down, worried about a bounce. We’re terribly deep at this point and my hand-wringing is worse than ever, but it’s quite obvious what the trend is. We’ve broken through principal support (at last), and as I’ve said so often, being short energy stocks could be the trade of the year.
Oil isn’t the only thing that’s weak, though. Freakishly, gold continues to suck out loud as well. If, a couple of days ago, you received a visit from an emissary of the future telling you that (a) interest rates were going up (b) there would be a massively bad piece of news for the administration in D.C., you would have logically rushed out to buy gold. Yet gold continues to stink, as it has more or less, since autumn 2011.
For myself, I am entering the day 200% short (I mean that literally, not in a derring-do fashion) spread across 54 positions. Having surveyed charts until late last night, I have found dozens of others I want to short.