Market closes don’t get much uglier. If there was more volume it would have been more telling, but it does go to show you the sneakiness of the funds that are still liquidating. It was kind of like the first one that blinks first loses. There was a calm until there wasn’t-and then the selling began. I was long SMN in and out most of the day but really pressed it the last hour. Basic materials are the new financials as the shorts lay in waiting for blood and they attack. It is a vulnerable group and not only are long hedgies liquidating, but the shorts are adding fuel to the fire. Never mind that X trades at cash and a multiple of like 4. Fundies dont matter in this market, either do charts. It’s historic action, and we won’t see it again for thirty years. I am lucidly aware of this and I am trying to squeeze everything I can out of the opportunity. And it is an opportunity. Just to show you I’m not anti-American I actually went long for about 95 seconds today.
My thought process over the weekend was that we could implode into maybe Wednesday and then rally into month end as portfolio managers and funds may want to put some cheap prints on the books. I’m not a calender guy and I don’t buy past indicators as hints for future action, but I think the opposite could occur as Joe Sixpack pukes all over his 401k statement at the end of this week or beginning of next week. This also should be the greatest tax loss selling season on record as NO ONE has gains accept for the shorts. Still one day at time. By the way things are freaking cheap. I won’t be trading tomorrow as I have some business but I will be checking in. I will get a post up later.
Where’s Carter Worth and Ned Reilly? Helloooooooo? I love Carter.