Mess with the bull and you get the horns…
That’s the continued lesson this uber-distorted market is beating into investors: Don’t doubt the rally; it will never end.
With hardly a down day in sight over the past several weeks, stocks continued higher this week and then positively *exploded* upwards upon the release of today’s “INCREDIBLE” (per Presidential tweet) May payroll report.
While the payroll numbers do indeed appear ‘incredible’ (meaning: ‘defying belief’) and seem destined for some pretty serious downward revisioning as economists parse through some very concerning assumptions and admitted errata by the BLS, the trading algorithms clearly didn’t care. The rosy headlines were a plenty good enough reason for them to ignite a stampede of the bulls and buy with abandon.
Today’s violent action, coming on top of a remarkable and ridiculous streak that has vaulted stocks to unprecedented levels of over-valuation, is a prime example of the dangers facing concerned investors thinking of shorting these maximum stupid markets.
We discussed this conundrum last week: those paying attention realize that there’s no way today’s prices can be sustained. But there’s a very real possibility that, if you stand in front of this mindless juggernaut mania by going short, it can destroy your position long before your thesis is proved right.
As we do each week, we’ve once again asked the lead partners at New Harbor Financial, Peak Prosperity’s endorsed financial advisor, to share their latest insights into the road ahead for investors.
by timeandtide 
