So there are some big things to think about as you weigh whether you’re going to have another Selling Opportunity in US Growth stocks today. Fundamentally speaking, why did USD signal #overbought and Gold #oversold yesterday?
One component of the answer has to be Europe. You don’t have to be a math major to get that when the European economic data sucks and the Euro signals immediate-term #oversold, that you should book some gains in one of my favorite longs of Red October 2018.
Admittedly, the word ‘sucks’ isn’t a ROC (rate of change) word; sucking or slowing at an accelerating rate looks more like this:
Remember our #EuropeSlowing call from this time last year? I do. I made that call when Tommy Lee was slapping a $100,000 price target on Bitcoin. Not to pick on the guy because he’s a really nice guy, but if you’re in his camp this morning (I just googled him):
A) “Fundstrat’s Tom Lee is ‘pleasantly surprised’ by the stability of Bitcoin” (its down -56% YTD)… and
I seriously have no idea what Lee or any other econ or strategist was telling you when we made the Quad 4 call in China, Europe, and EM back in January… or when we made the Quad 4 call in the USA in September.