Must read: A report from someone who shorted this market and covered it right on the bottom February 9th. That is one hell of a trade.
Not only that but Peter Grandich has been correct being short the bonds and recently stated that he is as bullish as he has been in 34 years on Gold - Robert Zurrer
A Brief Look At The Markets by Peter Grandich
Stock Market – I had noted in my February 10th observation, that I had covered my short position on the morning of the 9th. I stated, “A significant reason for taking profits in my short positions was the personal technical work that I do, suggested the short-term selling was exhausted. Sure enough, the DJIA rallied 700 points from when I covered. I believe we can see the market rally back hard next week, as the first sell-offs in Parabolic Arc formations are almost always assumed to be buying opportunities.”
As I make this blog post, morning stock index futures indicate another 300 point rise to the already-huge rally since covering my shorts. I believe this qualifies as “rallying back hard”. The question is, was the previous sell-off just a blip or a true warning shot? If a picture is worth a thousand words, this photo should explain my answer:
- Bonds – While the stock market thinks it was just a momentary blip, the bond market has clearly viewed a major sea change and is acting accordingly. The POTUS has “joined the swamp” in insanely out-of-control spending and debt crisis, that just may make the can unable to be kicked down the road anymore. The warning shot will become this, if the 10-year T-Bond gets above (and stays) 3%