SOXL Short Cover and Macro Warnings 🚨

Quick update: If you followed me into the $SOXL short trade, this morning is a good spot to cover if you haven't already.

The market is getting smoked on jobless and economic numbers.

The US economy added fewer jobs than expected in July, while the unemployment rate unexpectedly rose to 4.3%, the Bureau of Labor Statistics' nonfarm payrolls report for July showed.

Those additional signs of a slowdown in the labor market are likely to feed recession fears and rate-cut expectations.

SOXL is down from $70 to $31 in the last 3 weeks. The chart is a cliff.

Watch the 10 yr Bond and oil rolling over.

10yr just had a big decisive break of 4% level now 3.85% and oil down more than 10%.

These numbers are loudly telegraphing a recession.

Job market is softening.

Retail is a slaughterhouse everywhere you look with massive discounting going on.

PMI number wasn't pretty and Philly Fed Services number was downright ugly (-19 vs +2 expected).

All the massive govt stimulus from Inflation Reduction Act & Build Back Better, all the fudged govt #s and tens of billions pumped into economy for illegals only delayed the inevitable.

Feels like we are heading into or already in a recession.

Think the Fed cuts in September for sure. Possibly even 50 basis points if this trend continues.

Cash remains king.

-MK