Bulls are about to get weird.
While ignoring science and reason people are about to chase this market way higher.
Many people went into 2013 cash heavy, pessimistic a fiscal cliff deal would happen and anticipating a brutal fight on the debt ceiling. Little did they know we could print a trillion dollar platinum coin.
Now these people are watching from the sidelines as fools like me make money and they are getting anxious… waiting for a pull back that isn’t happening.
Also, there is an abundance of trapped short sellers… which will be more fuel for the fire.
Late in the day I got long Ugg’s maker Decker Outdoors DECK because it has an extremely large percentage of short interest and looks poised to pop off. I have a good history with this stock and feel comfortable calling for an easy 10% rally within the next 5-10 trading sessions.
I think Ellie Mae ELLI can be bought on today’s pullback. This is another name I have an awesome relationship with. This is an awesome housing market derivative… as they sell software to the mortgage industry. The housing market recovery is one of my favorite investment themes going forward. Right now I am riding Sherwin Williams SHW and Penny Mac PMT for that reason.
You know how pundits keep talking about the bond bubble bursting? Well that will make mortgage rates tick up… and put people into a frenzy to get a mortgage. Both ELLI and PMT should benefit enormously from the uptick in mortgage demand.
Short yen YCS has been my most profitable trade recently… and I think it will continue to work. I know many technicians are pointing out how incredibly oversold the yen is… but they don’t understand what QE infinity is all about.