Post-Fed Funds

Let’s look at eight important exchange-traded funds now that the FOMC is behind us.

First up is our loyal friend and companion, the Dow diamonds. This has been my anchor short position, and today was the biggest red bar we’ve seen in many, many weeks. We are also at the cusp of a major support failure, as indicated by the dashed horizontal.

The global equity fund (outside of North America) is a new short position for me, and it has cleanly broken below its trendline. The contagion is spreading!

Mexico (EWW), my short idea on Monday, was probably my most perfectly-timed short of the entire year.

My China (FXI) thesis was oh-my-God spot on, which makes the fact I totally fumbled the trade even more agonizing. This was, yet again, a brilliant insight on my part. Too bad I’m a shit trader.

The leveraged South Korea fund might be in the final throes of one of the most epic tops in financial history.

Tech stocks (XLK) are THIS CLOSE (holding fingers really close together) to a major breakdown.

Although stocks in general were quite strong pre-FOMC, they all weakened quite a lot, including the S&P 500 (SPY), which hit new multi-week lows.

The metals and mining (XME) short also sunk again, marking something like its seventh or eighth red bar in a row.

I gained ground today, but not by much, mainly because tech and semiconductors (SMH) were quite robust. If those can join the party for the balance of the week, that would mean some real progress.