Here are things I like:
- We now think that a trade war with China is a given. Tomorrow we figure out how much damage there will be and that will mean that a limited trade war is in the market and we will have taken out powerful lows in the interim.
- FAANG is so universally hated that it is coming down to whether the president takes a break from tweeting or not. I think he doesn't want to look too much like Captain Queeg so it is an opportunity. We have been buying some Amazon (AMZN) . Wrong so far, but even this President knows that at a certain point it is good to check in with the facts.
- We are oversold like we were in February. Another down day and we will be thinking huge bear market which helps the case for the bulls.
- The huge amount of down volume is extraordinary and it is taking down much more than FAANG -- Facebook (FB) , Amazon (AMZN) , Apple (AAPL) , Netflix (NFLX) and Alphabet (GOOGL) -- and semis and industrials that are linked to China. That's also a good thing for the bulls.
Against all of this is a realization, like at the lows in February, that this could turn out to be a not so hot year for the market and a good reason for that is the president thinks that CEOs are ungrateful given the gift of lower taxes.
That's not going away no matter what we do tomorrow. Still, after weeks of selling, we now feel it is time to return money into the market as all are panicking. The panic started in the a.m. and it is a shame ever to sell into it but when we issues our sells the panic hadn't set in fully. No matter, woulda shoulda coulda, tomorrow is another day.