It's Your Turn, Bulls

Now it is the bulls’ turn to prove something. In disclosure, aside from two small gold miners I took a try on into the close, I am only long one thing, India, and short one thing, S&P 500. The rest is as NFTRH had been advising going into Friday’s kickoff: heavy cash and short-term Treasury equivalents. [update plus a couple other things, Thing 1 and Thing 2 that I decided to hold on to. Thing 2 is so small as to be irrelevant. Thing 1 is a Canadian listed gold stock I decided not to take profit on, and instead ride to a paper loss; ah the pleasures of commitment.]

I have no real horse in the race other than a non-leveraged short against SPY. With that disclaimer to my stance, it is now a burden upon stock market bulls to prove their case because this market got perversely overbullish and was ripe for a real kick in the pants. The technicals are now breaking down to add to the sentiment case.

So it’s as simple as perma-bulls (the ‘its’ new secular bull market’ crowd) mustering up some bravado to back up their resolute bullish view. Come on guys ‘n girls, buy ‘em up! Get on CNBC and talk in your usual conventional tones and discuss conventional strategies as if this were a conventional market.

Pay no attention to my favorite chart showing a policy-driven wealth effect vehicle utterly dependent upon a certain kind of interest rate policy and unconventional bond-based market manipulation tools.