Worst start in over half a century

It is a brutal start of the year, the worst first 6 month since the 1970s or even 1930s from a different angle. 

Year to date, the tech-heavy Nasdaq is down 27%... the small-cap Russell 2000 is off 23%... the S&P 500 is down 20%... and the Dow Jones Industrial Average is off 15%.

To broaden this note even further, the conventional 60/40 stock-bond portfolio is down more than 15% so far. That's its worst first-half performance since 1932, according to Ned Davis Research, when the allocation was down 22.5% in the first six months.

This can be largely attributed to the stupid and failed economic policies of this fake administration together with the Fed which is always behind the curve. We will likely continue to see a depressing market for a while before getting sustainably better. In the meantime, doing swing trading is still the best strategy for the short term.

Here is what we did last week for a quick double within days by buying during panicky selloffs.