Bearish sentiment is high in the Rick’s Picks chat room, even if your editor lacks conviction himself at the moment. Each each new day is no better than a coin toss, as far as I’m concerned. The big trend is bearish, with an implied follow-through to last week’s steep selloff that has yet to come. However, while we wait for the other shoe to drop, short-squeeze rallies of 300 points or more can come at any hour of the day, with little warning and for no apparent reason; or, as was the case yesterday, they can fail, but without producing much of a relapse. Yes, it feels to me, too, like something’s got to give, either up, or more likely down. At the risk of missing the next big move, however, we should put strong opinions out of our heads for now. This market is out to hurt bulls and bears alike, and it’s no time to try and be a hero.
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I think the markets are reflecting the rapidly developing chaos the entire world is experiencing.
Entire countries are emptying out.
And not just in the MENA.
Puerto Rico, Brazil, Venezuela, Columbia, Mexico.
These places are in our backyard.
And they are in the process of collapse.
To someone who grew up in an organized, stable society/economy, this is very disturbing.
And here in the USA, the percentage of people living paycheck to paycheck is growing ever larger.
This is a situation very likely to motivate anyone with some money to pull in his horns, and to preserve his wealth.
Rome is falling as you read this.
And the last time Rome fell, the aftermath was the Dark Ages!