Probably nothing says it better than this headline from after Friday's market close:
How bad is it? The media banter this weekend will center around the Patriots and the Eagles, but just about the time of Super Bowl's opening kickoff the Asian financial markets will be kicking off themselves. That opening and the performance of the foreign markets thereafter will likely have a lot to say about the winners and losers of our own game come Monday opening bell.
Before getting too excited about Friday's decline, consider the notorious "Black Monday," crash of October, 19, 1987. The Dow dropped 25% on that memorable day, which today would be the equivalent of over 6,000 Dow points. Would not that be the ultimate rebuff of the NFL, that hours after their showcase event of the season, no one cares as another contest has stolen all the headlines? We should all know by halftime.
Link: S&P Overnight Futures Trading
Meanwhile we did get the Dow/S&P Sell Signal on Friday's close. I hope some of you were able to get in before Friday's close as the market ended on the lows of the day. Nonetheless, a new trend is a new trend and one day is hardly enough for an Intermediate Term trend to play itself out.
Along with stocks, Gold, Bonds and Bitcoin all have turned down. The OSTK puts that were recommended on Thursday are already up nicely. They represent a way to bet on bitcoin's demise. Note that our GBTC trading model has been out of bitcoin since late December, avoiding the carnage as GBTC has dropped 54% while the model stood on the sidelines in cash. Since bitcoin trades 24/7, where it begins next week is up for grabs. Wouldn't it be ironic if it is bitcoin that leads stocks down the rabbit hole?
It is most timely and appropriate that I end this weekend's narrative as I have so many times over so many years with this fervent market theorization: What a game!
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