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Offensive Linemen

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

The small caps want to break. They really, really want to break. Yet the sides are evenly matched. On one side, cold reality. On the other, a hot printing press. Watching prices ricochet up and down in perpetuity is getting embarrassing. Honestly. This is a joke:

Liquidity moves markets!

Follow the money. Find the profits! 

The longer-term picture shows that the /RTY has indeed fracture its uptrend, but it hasn’t “let go” because it isn’t being allowed to do so.

I would like to be extremely aggressive. This is, simultaneously, an equity bear’s greatest opportunity and most horrendous living nightmare. If the idea is to short overvalued stocks, it’s a candy store. But, as clearly has been shown, overvalued can go to insanely overvalued. If companies like Tesla has be brought with P/Es of 1300, anything is possible. If a one-trick pony like Zoom can be worth more than General Motors or Ford, we’ve clearly lost our collective marbles.

Thus, I’m dialed it back to 54 live short positions and 63 potential ones waiting in the wings. Historically, September is supposed to be the most bearish month of the year. Since these are, shall we say, nor normal times, I’m counting on nothing.

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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