My rallying cry, pun intended, this past week, has been to “Short all rallies!” I have not been shy about tweeting and blogging about this idea in real-time over the past couple of weeks. This, so far, has remained a very viable approach as rallies get sold into, time and time again. It worked on Fed Wednesday when the market shot up and it worked again on Friday when the market suddenly shot up to plus 381.7 Dow points before rolling over to close -351.98 Dow points in the red.
On Friday, the market was floundering again before one of the Fed Heads by the name of John Williams went on CNBC and started babbling something about the Fed being more flexible than the market thinks it is. For some reason, that sent the Dow Jones Industrials Index flying to the upside, precisely 394.99 points into the great green beyond. But, as I tweeted at the time, this was probably another short-the-rally opportunity, and it was.
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