A Selling Opportunity Of The Decade
Tim Knight | May 01, 2013 02:15PM ET
Well, the whole FOMC thing turned out to be pretty anti-climatic. There’s still an hour left in the trading day as I’m typing this, so who knows how we’ll end up, but so far, the tug-of-war seems pretty even between bulls and bears.
For myself, I covered my GLD short early today, but I left most other shorts intact. I am 75% committed; I intended to get aggressive if things really started breaking down, but they haven’t, so I’m standing still for now. I’ve got 98 – count ‘em! – 98 shorts in place.
But I direct your attention to one very simple chart – the DIA:
It’s screamingly obvious that the final violent selloff in March 2009 – tinted in yellow – represented the buying opportunity of a lifetime. My congratulations to those who took advantage of it. I certainly didn’t, and I’m poorer for it.
But I submit to you that the levels we are at presently – tinted in magenta – do not represent the buying opportunity of a lifetime, or even a lunchtime. It stuns me that so many people think stocks are a great buy. I believe current price levels may, in retrospect, represent the selling opportunity of the decade, which is why I’m continuing to short this beast.
Because, after all, all we really know is…………..the Fed will either reduce purchases……… or increase them…………….depending on things. And, while it may seem like I’m trying to be snarky, that is precisely and accurately what the FOMC just told us all. We’ll do something or another………..depending.
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