Feb

10

Compliments on the nice Long last week. There is a good chance the market will stabilize for a couple of weeks, and even end up rallying. But this will be the final Long stint for maybe years to come. Technically, the reason it should work is because this was first drop from the Highs. You always make money buying first correction. And then you always make money Shorting next rally. That's just how it is, technically speaking. As far as why US stocks will (ever) drop: the time will finally come to address and digest the years of impropriety: all policy, all politics, all debt, all moral hazard, all geopolitical posturing. If nature is cyclical, then why not a catharsis.

Those Long-term (240 years) charts published overnight certainly illustrate that stocks are in the worst position of all spaces. Treasuries don't look good either, but not necessarily this year. Crude looks potentially veeery bad. So does Gold, but not quite to halve its value. Commodities are to correct even less. The USD chart appears to have tremendous upward potential; my speculation: that's where the surprise is.


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