Surviving Market Bears Being Teased

Lucky 7: My Best Performing Shorts Today

If the market gods wanted to tease any surviving market bears in the cruelest way possible, they managed to do it twice over just the past few days:

Last week, with President Donald Trump getting COVID (end result: nothing) and then, just days letter, the President saying “No dice!” to any kind of stimulus package (end result: nothing).

Someone – and I think his last name rhymes with “owl” – really, really, really wants this market to keep chugging higher through election day. It’s sickening and boring at the same time.

RTY Daily Chart.

RTY Daily Chart.

What makes my blood run cold is the chart of the ES below. Back on Sept. 24, we were poised across the board for a beautiful breakdown. Well, that just isn’t allowed, and we’ve been doing nothing but going up ever since. That is a powerful basing pattern that has been completed, so I wasn’t surprised Thursday after the close to see everything still ripping higher.

ES Daily Chart.

ES Daily Chart.

As I’ve been mentioning, I’m starting to think it best to virtually go all-cash until this election is over (not to say that we’ll be “all clear the Wednesday morning following, since God knows what the state of the results will be).

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Tim Knight

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