The Drunken Sailors Of Wall Street Stagger On

It is obvious that the day traders and algos are bound and determined to tag the old January highs, but why any investor in their right mind would chase another tiny gain from here when there is 30%, 40%, or even 50% downside ahead is a palpable mystery; and we do mean “tiny” gains because the old highs are just 1.1% overhead on the S&P 500 and 4% on the Dow.

Indeed, this exceedingly unappetizing risk/reward scenario has gotten down right ludicrous in recent weeks as the casino has descended so deep into its blow-off booze that it resembles nothing less than a drunken sailor. Staggering around the deck, it pitches lower by 1% one day, higher by 1% the next and then back around the barn again—all without rhyme or reason.