Ad Hoc Commentary – two bears went for a walk
Two bears went for a walk in the forest and they both fell into a bear trap dug out by a hunter.
The nimble bear soon realized the hopelessness of the situation and prayed that he can escape the ultimate fate that lies ahead. A genie heard him and turned him into a monkey and he soon clambered out into safety. He bought back all his S&P500 shorts from today till the day just before the comet Siding Spring hit on Oct 19.
The perma bear, on the other hand was delighted to find a cosy ‘home’ from the heat above and decided to stay in the bear trap. He was delighted that the comet brought more bears to his once lonely abode. As soon as they talked to one another, they realized that they all had been bears since October 2008 and were consistently calling for another bear market since then.
Soon, they started giving bear speeches and giving each other best speech award. They were busy patting each other’s back and were totally oblivious to the fact that they just walked into a bear trap that will bottom at 1812. Camaraderie soon turned into misery-loves-company on the fateful first trading day of November, when the hunter returned with a 1812 guillotine: http://www.gmmachinery.com/machinery-for-sale/cincinnati-model-1812-guillotine/
We had called the SPX bluff when it crossed 2000, and the bears had walked into our bear trap of 1905. We should be collecting a lot of bears here and they will serve as bull fodder when the bull run starts again in the first trading day of November.
Good luck in the markets.