Can I just say good riddance to May and move on? After all, the first 19 days were as painful as any in recent memory. And one of the longest and most relentless selling waves took place through May 20th. The good news was that my loyal readers got a timely warning that a low of significance was forming. During that period I presented a number of indicators and charts which firmly supported my position that “A” bottom was being made, but perhaps not “THE” bottom. Since then there has been more and more evidence that the May low may perhaps be even more important than I originally thought. I will have more on this shortly.
In the very short-term stocks are a bit extended and could use a little pause to refresh. Nothing big and maybe nothing more than some sideways action within 1-2% of here. That would be a buying opportunity. And to be crystal clear, I do not believe the rally is over or even close to ending. At a minimum this should be the 7-15% rally I have written about and it should last more than a few days or weeks.
June begins today and history says that the month struggles when it starts in a downtrend. Today is also a seasonally strong day, but one of the weaker ones. If today is down, tomorrow has a high likelihood of being up.
On Friday we bought more TLRY and ARAY. On Tuesday we bought SARK and more levered inverse NDX, HYG and HY funds. We sold levered NDX.
