So stocks are selling off a bit this morning, following through a bit on Friday’s selloff. Headlines suggest that it’s because the President tweeted that the U.S. is going to tariff Brazilian and Argentinian steel imports, at least that was excuse number 1; excuse number 2 followed with another disappointing manufacturing ISM print.
Sure, last Wednesday I offered up some charts and said that, in the very short-run, “the market looks overly ripe for the picking.” Well, indeed it does, but if we’ve learned just one thing during what looks like maybe your typical late-cycle thrust higher on deteriorating fundamentals (i.e., on hope that it ain’t so), it’s that it would be crazy to think that that this very modest, albeit foretold in the indicators, pullback won’t be quickly reversed by a tweet from the top or a comment from China.
It would be equally crazy, crazier in fact, in my humble opinion, to play in this market without some serious downside protection, regardless of the price action from here!
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