From an NFTRH update yesterday after the market’s reversal and big bounce…
For a market that was primed for a drop, the back up in long-term yields provided the spark (with a side of whatever that disaster was in volatility ETN/ETF products). I am doubtful as to whether this pig can simply shake it all off and go back to over bullish and overbought so quickly. If there is yet a C leg ahead, I’d be prepared for it to have the potential to reach the 2460 area, where there resides a gap.
If the market seems set to fail around the SMA 50, be ready for a pretty good spook. We won’t be spooked, but those around us would be.
I’ll remind you that cash is paying income now and if he’s worth his salt, Chairman Powell will be allowing it to pay another .25% in March.
So far, so good. Here’s a daily chart showing one gap getting filled and another down below around 2460.
I am prepared to get bullish certain areas (and have bought some ETF positions) and still holding bearish and short in others (Semi & RE). But cash remains the thing for now. The pig is not at all broken but these doofuses who believed in Trump and his pumping are getting what they deserve.
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