Uglier By The Day



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Significant Divergence



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Tolling of the Bell. TZA and JNUG.

We have a proprietary indicator flashing "sell" on stocks as of today, for the first time since mid-November, after which the DJIA lost over 700 points.

This signal has turned bearish just before the past 11 of 12 market slides of 500 or more points in the DJIA, including the major plunges of early and late 2018.

At this stage, we reasonably expect much more than a 500-point drop.

Once the DJIA closes below break-even for 2020, which is 28535, we believe it is only reasonable to be short pending new highs in all 3 of the DJIA, NASDAQ and S&P.


We'll add one more position in TZA once it trades back up to $36.20 

We'll place a stop-loss at $34.20 on this one.


We last bought TZA in early November along with JNUG.

JNUG is up over 55% in the two months since then, while that TZA position is down 13%


We'll now place a stop loss on JNUG at $74.95


The DJIA closed today at 28583, TZA at $35.74 and JNUG at $85.54



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The decade’s big market winners were companies with no real net worth

"The time will come when we will all learn a lot more about the true value of intangibles."

Bloomberg: What does it mean that some of the decade’s big market winners were companies with no real net worth?



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