#market pullback

Malaysia Market Review: The FBM KLCI index rose by 0.3%, continuing its recovery with over half of its components gaining. Lower liners had mixed results. The Telecommunications & Media sector led gains at +2.1%, while the Energy sector was the weakest, dropping 0.2%. Tariffs Wall Street saw a pullback across all three major indices due to renewed concerns over tariff policies, particularly…

The FBM KLCI is expected to remain subdued following strong US nonfarm payroll data, which dampens the likelihood of rate cuts. The index aims to defend the 1,600 psychological level as foreign funds may favor US assets or Treasury securities. Market pullback However, the market pullback offers investment opportunities due to attractive valuations. Investors are also monitoring Malaysia’s…

Huge spike in the $VIX as the market continues bleeding red.

If you recall our previous post on the $VIX  (https://www.imdeadbroke.com/vix-backwardation-feb-2-2018/), the $VIX was in backwardation between the Feb and March expiration and returned to contango during future months. However, today the $VIX is in backwardation through August which could be indicative the market may be preparing for a…

Huge spike in the $VIX as the market continues bleeding red. If you recall our previous post on the $VIX  (https://www.imdeadbroke.com/vix-backwardation-feb-2-2018/), the $VIX was in backwardation between the Feb and March expiration and returned to contango during future months. However, today the $VIX is in backwardation through August which could be indicative the market may be preparing for a…

Flying JFK to SFO right now. Some research should follow - but first a little trash talk.

Knowing now we'll gap down tomorrow, off the low-heeled no-jobs report posted during the Friday holiday, I'm finally free and willing to say a couple of things about this market...

First - It's stronger than both you and I think

How do I know this? I know by employing maybe 10% rocket science, combined with some fluid thinking and a preponderance of simpleton logic. Charts remain strong, en-mass, while every pullback still is met with conviction of further downside, by a majority of participants (media, professionals, individuals; anyone with a head). The investment culture KNOWS this market will wreak havoc again, proving finally, why they were right to avoid it; why they can't expect anything much good to come of it; and how they knew it could not be trusted. This last part is exceptional and important. Important because when the majority distrust a headstrong market, that market will work its mealy way higher; before this questioning mass can finally take credit. And exceptional, because - this is rare, you dimwits! How old were you when society last loathed a healthy stock market?

Oh, right - it's not a healthy market. It's gamed and manipulated, and altogether artificial.

Well, duhhh. Did you think we were playing Hearts?

And here I have an unexpected advantage over the brunt of you. I grew up distrusting the market. I got involved in the markets because I thought 1987 was a necessary cool, and I was excited to participate with the next elevator drop lower. Eventually, such as when the crushing bear (correction) of 1990 failed to make me wealthy, I repositioned and attacked long. The Wellfleet's and Cisco's had so much power then (and especially on the other side of the numerous reactions lower). Always, always, always though, I knew how it would end. I kept an eye to the downside because hell was only a bear market away. I was cleaning up on the long-side, in an incredible decade for stocks, but only to bide my time. My heart was searching for the ensuing hell to come.

It's fair to say I left some value on the table then; from time to time

A rising market will smack back from time to time, that's altogether normal. But let's look under the surface. Are the are a large majority of well-performing stocks? Are there a low number of new 52-week lows? Is there a healthy degree of skepticism from the investment public, the professionals and the media heads? Are you continuously under-invested when stocks are yet-again rolling higher? Or were you over-concerned that a deeper pullback was overdue and you kept it light or attacked it short even?

Are you right for this game?

All stocks will go to zero at some point. That has been my mantra. I will suffer something horrible at some point, surely, but I won't be riding a downtrend into my imminent demise. I know the downside is more wicked and accelerated that than the process of moving higher. I know that society is constructive, that we build and build, perfecting along the way, only to deconstruct much much faster, in the end; eventually.

So come and get me. Come eat my lunch. Tomorrow we gap down on a rear-view mirror report and I will be flayed (actually, I'm not so exposed...but next time I'm surely going down - you know this).

Yes, yes, I will be hurt. All the reasons you are holding back are going to cause me great pain one day.