I would probably say today was a bull trap if it wasn’t for the words from our favorite Aunt Bea, Janet Yellen. Evidently the Fed govs had a secret video conference about the jobs target. Candles, skulls and cross bones were involved. The Doors ‘This is The End” was background. Yes it was a short squeeze, but remember that all rallies start with a short squeeze. That’s why picking bottoms is impossible, because you never know when an event happens, and they don’t ring a bell at bottoms or tops to give you the heads up.
Aunt Bea has really bought back all her hawkishness. She did it after her “in six months” faux pas (how dare she misspeak), and she did it again today. The bulls ran with it, and the shorts crapped the bed.
Through out this whole sell off, I shorted one stock $DDD. I was up about 4 at one point (in a day and a half) and covered today +1.50. I’d rather be in cash (which I was, spent some today), then short a bull tape. Yes its a bull market.
The Masters starts tomorrow and the Mets can go to .500 tonight. I am filled with optimism on all levels.
This year WILL NOT be the lay up that you saw last year. So get used to it. You must put your focus on individual names. NOT the broader market to make you money.
Hope I’m right about the bull trap thingy. I still trust nothing here, but the bar is so low on earnings they could parachute off a nickel.
Now carry on.