The Market: Dracarys

KWEB vs. QQQs and SPOOZ.

Disclaimer: For informational purposes only.

Please see here and here for more information about The Weight of the Evidence.

Discussion

In his CNBC interview yesterday, from the standpoint of shorting the US equity market David Tepper expressed concern about the market entering a 1999/2000-like bubble on the back of easy money around the world broadly and large-scale Chinese MMT stimulus specifically. I’m not so concerned about that for two reasons, and believe it makes a ton of sense to be underweight/short US equities here on a tactical basis:

1. The Fed’s rate cutting program is fully priced into stocks

2. The exact Chinese stimulus Tepper cites as a reason to not short US equities is the exact reason TO short US equities on a tactical basis

Dracarys.

Fully Priced