I’m as bearish as you are, but that doesn’t mean I’m eager to jump in front of the rally just to prove the point. There are two precise spots where we could attempt to intercept it cautiously, and they are shown in the chart accompanying today’s E-Mini S&P tout. But you should note as well how little it would take for the S&Ps to become an odds-on bet to test the old highs.
Short This Squeeze…Cautiously
- September 16, 2015, 3:47 pm
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September 16, 2015, 5:29 am
“Come to the edge,” He said. They said, “We are afraid.” “Come to the edge,” He said. They came. He pushed them… and they flew. ~ Guillaume Apollinaire
We are not advocating that you run out and lunge into the markets; we have been stating for quite some time that the markets needed to let out some steam. Note, that the markets have not experienced significant correction since 2011. It would be folly to assume that the markets will trend in one direction without letting out a burst of steam. The markets have already shed roughly 15% from high to low. Given the heights they have run to since 2011, a 20% move would still be acceptable and nothing to fear. At this point, prudence is warranted, but a massive sell-off should be viewed as a buying opportunity, in contrast to a colossal tragedy. Our general suggestion would be to buy when panic sets in, and blood is flowing freely in the streets. Be wary when the masses are joyous and delighted when they are not.
I envy paranoids; they actually feel people are paying attention to them. ~ Susan Sontag
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Sontag also got America right in just six words: a dysfunctional matrix of metaphysical onanists. RA
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This chart says the FED will raise FED funds tomorrow:
http://www.booktrakker.com/Economy/OneYearTreasury.jpg
Andy
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So much for THAT chart. RA