24Mar3:35 pmEST

Rocket Emoji Leads to Failed Doji

I continue to stay sidelined in cash as the price action this week has morphed from a bit worrisome to downright brutal this afternoon. Case in point: The small caps in IWM were supposed to put in an "inside day" of a mild bounce at their 50-day moving average, as we charted earlier for Members and on my main Twitter feed in the session--At least that is what we have grown accustomed to in this market and hence was "supposed" to happen. 

Of course, with the market being the manipulative monster that can be (fitting on a day where GME gets walloped after earnings down 31% now), we now have IWM breaching yesterday's lows and perhaps headed down to $210, even $205.

Mind you, this is all happening as VXX is flattish and was red most of the day, thanks to rotation theses galore and hopes that energy and banks are done correcting. I am not sold on that thesis yet, however, and joined the camp yesterday which believes we are witnessing too much near-term complacency in this market, seasonality be darned. 

It may very well prove to be merely some end of month/quarter profit-taking/rebalancing.

But one has to wonder if all of the call options buys dry up as the "stimmy" effect in markets has been overhyped, will the laws of gravity compel tech and trendy growth stocks to a sharp rug-pull? That is the risk at least, as I see it now against a complacent backdrop. 

Splitting the Baby You See There, Scooter. He T...

 
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