‘Rinse & Repeat’ – has been a reference I’ve repeatedly made to so many effort to revive every effort to ‘correct’ the overpriced Senior Averages for a few months now. Nevertheless risk predates it all to the parabolic January thrust, which we not only viewed as unsustainable, but which led to ‘flash crash’ conditions (delivered in early February); and a ‘ragged pattern’ that followed throughout the Spring.  

It was indeed ‘rinse & repeat’ for the rallies, the failures, oscillating S&P or Dow moves; none of which maintained traction in any direction. Now we’re in a ‘wider’ scope of cycles involving forms of ‘rinse & repeat’, which also in many ways are unresolved.  

First of all the market; with the Summer beginning with expected volatility, as identified forthcoming not by after-the-fact breakdowns like tech-stomp Friday, or washout Monday; but starting two weeks ago with nonsense like ‘sweet-spots’ for markets being proclaiming by too many pundits.  

In reality it was a series of short-squeezes every time they leaned-on that small universe of stocks that did the heavy-lifting of this market for months; and they never saw upside follow-through because there was a dearth of a needed flow of fresh money to keep it alive  

That will also likely be the case this week; with Peter Navarro’s repudiation of the Bloomberg or Wall Street Journal morning stories (that accelerated the ongoing decline from last week in the FANG stocks as only the oil-led Dow boost held it together on Friday) suggesting ‘restrictions on all foreign investments in technology’; with an obvious target identified as China.  

So Navarro took the pressure off that (far better remarks that his asinine comments about Canada weeks earlier) by saying nobody was singled-out and that indeed China was guilty of industrial espionage (basically) as well as intellectual property theft for years. He didn’t mince words, but at least it was proper English without personal insults.