We are reposting a piece we published on the very day the market peaked in July right around here. The S&P came close to making a new high today, within 1/2 point and couldn't even end at its closing high of 3025.86. Close, but no cigar, and sometimes a cigar is not just a cigar. Thank you, Sigmund.
We maintain this is good place to sell and set up shorts again. We will sell all day long up until 3125, at which point, we will cut and be forced to capitulate that "this time may be different." The market should be able to look through another meaningless Potemkin race deal with China, which leaves the world worse off than when negotiations began but it's hard to bank should of. Arghh, we are obstinate but not stupid.
Stock valuations are at record highs and the markets are so, so gummed up and distorted by government intervention, mainly from the Fed — the ultimate socialism, in our book — that policymakers and market analysts have lost their compass and can't tell true north from south, east from west or front from back. The cheerleaders were out in full force with their pom-poms this week, by the way. Our experience is that when it feels the hardest to sell, it's time to sell.