Monday Market Madness – New Highs Amid More Turmoil

What will it take to stop this market?

Like Rasputin, the market has been Poisoned (by bad earnings), Shot (by Brexit), Stabbed (by negative economic reports including 50% reductions in GDP forecastes) and is clearly Drowning in debt – yet it will not die!!!  What is up with that?  Not even the threat of Donald Trump becoming President of the United States is enough to spook the bulls – so far.

This morning the Asian markets were flying, led by Japan gaining 2.5% off the strong US jobs report that led to a strong Dollar and a weak Yen, which makes all the Japanese exporters happy, for as long as that lasts, anyway.  Also lifting the markets are fresh rumors of an OPEC production cut, which had oil (/CL) hitting $42.50 along with $45 on Brent (/BZ) this morning and had us getting back on the Futures shorts in our Live Member Chat Room earlier

We're also shorting the Futures at Dow (/YM) 18,500, S&P (/ES) 2,180, Nasdaq (/NQ) 4,800, Russell (/TF) 1,230 and Nikkei (/NKD) 16,700 but only if 3 of 5 cross under in which case we short the next one to cross and that's then confirmed by the 5th cross under and then we stop out if ANY of them cross back over – very simple and it stops you from losing much money while letting a winner run wild.

If you are bullish you can play it the other way but I'm not and neither are:

  • Stan Druckenmiller (May 4th at the Ira Sohn Conference): “Get out of the stock market.”

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