A Glorious Day In Equities, plus SJB, HXB and Cocoa

 

Six weeks ago we posted our intention of entering a 4th SJB position.

Although it has not yet traded above our intended buy stop level of $23.40, it did cross a 22-month down trend today so we bought SJB to quadruple our holding at $23.30

A nearly 7-year down trend lies not far above, currently at $24.40 

Friday was a glorious day in stocks resulting in the DJIA posting its largest 1-week point drop of the past 9 years. 

Do not be tempted to buy however.  There are no bargains to be had. 

Today's action is just a small blip on the long-term radar, and only brings the senior index back to the level of January 11. 

Stocks are nowhere near sanely valued by any reasonable measure. 

Several weeks like this would be required to bring markets to an "oversold" level on even a short-term basis. 

At the close today, futures were a virtual sea of red.  Better get used to it.

We remain long cocoa via NIB.

Canada’s TSX is back to a level first hit in July of 2014, then reached again in January of 2017.  With a drop equivalent to that of the last two days, it’d be back to a level first reached in early 2008. 

This shows extreme relative weakness to U.S. markets, and we’re happy to remain short via HXD.

 

 

 



We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the positions we do, or for mentioning any positions or publicly traded companies in this blog. If we hold existing positions we divulge the fact. This blog is merely a diary of some of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult a competent, experienced, and honest broker or investment advisor before making any investment or speculative decisions.

Please presume that we, she, he, I, me, it, them, they, us and you are purely fictional characters and that everything written in this blog is satire intended for comedic amusement only, and not to be taken seriously in any way. Just like "real" analyst proclamations. Thank you.

To be notified when this blog is updated :
Please e-mail christianguinness@hotmail.com with "Subscribe to blog" in the subject line or click here to do so automatically if your computer is configured accordingly. We have never shared our mailing list with anyone, nor will we. Please note that we only send update notifications when a trade idea is diarized or updated materially, not if a posting only contains general commentary.

This publication has been prepared solely for informational purposes and is made available on an "as is" basis. RidingTheGravyTrain (RtGT) does not make any warranty or representation regarding the information. The material is proprietary and without prior written permission from RtGT it may not be reproduced, copied, modified, performed, published, distributed or broadcast, in whole or in part, in any form, other than for your own personal, non-commercial use.

Nothing in this publication is intended to constitute legal, tax, securities, or investment advice, or an opinion regarding the appropriateness of any investment, nor a solicitation of any type. Nothing in these pages constitutes an offer or a solicitation to buy or sell a security nor is it to be construed as investment advice.

RtGT is not an investment advisor. The general opinions and information contained herein should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional concerning your own situation and any specific investment questions you may have. RtGT cannot guarantee the future performance of any investment.