Current selloff over, buyers rushing in. The good news is the next global meltdown has just begun. The upside is severely constrained because risk appetite has already shifted for this cycle. Once people see nasdaq drop 8.5% in one day they are VERY cautious buyers...and will sell at the first whiff of fear.
There are too many shorts! Nearly 100% of all equities have a short ratio between 1-80%. This is the #1 reason equities are at all time highs and likely will continue higher. The markets are drifting in an ether trance.
WSM had a marvelous run and lots of money was made the past 6 yrs, but WSM and other housing-related equities appear to be running out of steam. Unfortunately, nothing lasts forever. The cool thing is now we can make even more money to the downside.
Appears to be too soon. Central banking collusion has been working marvelously well for 6 years and looks to continue. Signs of credit risk spread but no recession yet.
The commodities super cycle ended in 2008. CAT, JOY, CLF, SCCO, etc are on a 5-10 year path to return to their long term historical average prices. Extraordinary money was made but now it's all downhill...unless you're short.
Just a temporary correction of the overall markets and SCCO, or is this the beginning of the next bear market/recession? CAT is dropping quite a bit lately, too. Markets increasingly looking bearish, especially for cyclical industries like commodities that depend on a strong world economy...
Right now is a sucker's short. Tomorrow the bulls will return full force to bid up the market 5-8% over the coming days. Of course, after the pop the market will likely resume what appears to be the beginning of a bear market
As the markets roll over, consumers will snap their purses and wallets shut on discretionary spending. Look for ACAT to grind back to $3 over the next few years.
Commodities have had an amazing run up to '08 and again in the current bull market but they will have a tough time as the markets roll over. Look for this to be back to $2 in 2-3 years....
Markets barely down and HOG already off $15 from high. Don't worry, better to take profits now then losses at increasingly lower prices over the coming months/years.