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Straight Up

This is a syndicated repost courtesy of Slope of Hope. To view original, click here. Reposted with permission.

It has become quite evident that anyone who dares short this market needs to adopt a “smash and grab” attitude and simply cover whatever positions they have during those rare instances (like last Thursday) when the Fed briefly loses control. The fact we’ve soared about 2,200 Dow points in 36 hours based on absolutely nothing proves that.

Liquidity moves markets!

Follow the money. Find the profits! 

Chatter (once again) about a trillion dollar infrastructure bill is pushing equities higher and smashing bonds, since a nation addicted to endless trillion dollar programs is looking like an increasingly worrisome credit risk. The bond futures have fallen hard over the past 36 hours:

Thus, virtually the entire rout from last Thursday has been laid waste. The small caps have just about returned to their neckline.

During yesterday’s disappointing turnaround, I had trimmed my positions from 75 to 40 and likewise trimmed my exposure from 150% to 80%. I am thus entering the day relatively light and, frankly, feeling an awful lot like Sisyphus.

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

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