UNG toast, Oil following suit.. Recovery = nul
I have been speaking about the market selling off after July 1 for quite sometime. As we speak futures are down 75 pts. The reason behind the sell off is clearly reallocation coupled with a massive market wide sentiment change. At the tops of rallies bull/bear sentiment is always a struggle for the fittest, the struggle usually plays out in a crescendo until the bears take over. My theory behind this is it takes some convincing to get mom and pop traders on board by way the funds selling into their buying. Mom and pop thinks we are bullish, not the case. The flight to safety trade for the bulls was UNG, trade is now over unless you are short.
In other tech news.. The founder of beloved dinosaur Netscape Marc Andreeson and his fund partner Ben Horowitz have closed their venture capital fund. He cites increased market weakness over the next 10 years. This guy is smart, very smart.