I think we put in a short term top. Indicators are showing divergences across many time frames. Volume was fumes compared to last couple of weeks. Also the financials did not set new highs yesterday or this morning while the indices did. Yet another divergence. This is about as good of a setup as you can get. Very high probability that you make some decent money on the short side over the next few days and possibly into next week.
I would concentrate on shorting the financials and/or realestate. Go long SKF and SRS. If you are in need of a fix then buy FAZ, the crack cocaine of etf's.
I found a shocking report. Jay you may already have read this report, but when we talked out in Vegas I thought you said most of the RE had already been written off. This report is from GS and deals with CRE. Almost nothing has been written off yet by these banks. Shocking.
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjSaOrL8etUvLw4WQeHgD7-fRXZLxo8RCoDEjYSezzijGkVw3fLLWGSsJ6Zb35RJSNikKw1yYVoQA2DytAmZAlFx_KOVQqL3uhyphenhyphenvjbuNoNbwzWCvFCytBlnF_6chhAAqwA5GqYdLI9jQefW/s1600-h/zero+hedge.jpg
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Nope to the contrary. I said that we had taken some pain in the residential side of the ledger, but the pain had not yet been felt in Commercial Real Estate, CRE, or Commercial and Industrial lending, C&I. Those buckets are a huge part of most banks lending book. So ... the banks have been hit in the gut with residential this cycle like never before and we have yet to go through the rest of the credit cycle in CRE and C&I.
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