Navigator Algorithms – 100% Cash
We are back to cash this morning as we triggered our stop yesterday at 3798.25 (5-day EMA) for a small loss from our entry at 3801.25. For the most part, the Tech Monsters continued to be punished by investors for their oligarchical attacks on the First Amendment. The S&P 500 index and the NASDAQ 100 both suffered. Meanwhile, the New World Order is preparing to grab the reins of government – and the cash printing presses are ready to roll with an additional $2 trillion stimulus proposal. If approved, the deficit will roll on up and over $30 trillion – but who is counting?
This morning, then, we get to add an element of WWSHD (when what should happen doesn’t). The $2 trillion Biden economic plan announced yesterday has done little to cushion the Big Tech blow so far. By the way, losses for Facebook and Twitter investors now well exceed $50 billion. The Class Action Plaintiff’s bar is going to have a field day with that for sure. So while we were stopped out for a small loss, we are gifted with the added pleasure of watching the Big Tech bullies get eaten alive by their leftist brethren.
I have a long drive back to Colorado this weekend. With one in three people enduring the China Virus in Los Angeles, I decided not to fly. I will be outlining my third attempt at the 2021 outlook on the way, which I hope to record Sunday night. I am even considering a live broadcast Monday evening so that I can take questions. We will see how the weekend goes.
It is only the second time in a year we have been stopped out with a small loss. But therein lies the value of stops. Both the market and sector leadership are in flux.
The actions of the past week are unprecedented in a Democracy. More evidence surfaced yesterday that the left organized the unrest at the Capital well in advance and dressed up as Trump supporters in collaboration with CNN camera operators. But impeachment is just another day in D.C. now, so why bother to make sure it is justified. Perhaps that narrative could change slightly – that President Trump incited the left to riot – dressed up as his supporters. That way, they could blame him for last summer’s riots too. Truth is likely to become more and more elusive as time marches forward in this dystopian movie.
The market will now start focusing on earnings. Yes, it is that time again.
More on all of this soon. In the meantime, the market generated information is to stay out.
AF Thornton