Closed an nice short trade on TSLA yesterday with a +12% ROI. In and out with limited exposure. Steady and nimble in these choppy markets.
Equities corrected yesterday, but its stalling already. Will the share buyback window create another rebound with a shorts squeeze. Most probably. The the next drop could be the big one. This is a most interesting chart from Dohmen Capital. You cannot just do buy hold in these uncertain time. Checkout my Tactical Allocation Model and subscribe.
Some talking heads say that the USA credit downgrade is no big deal, but if it’s the case why has the LT Bond TLT cratered below its sideway trading channel? Obviously it is a big deal as this kind of signals the beginning of the Sovereign debt crisis. It will take more time to developed, but investor should stay away from Bonds and have little exposure. Hedge Funds have the highest short position in history!
That being said there could be some short covering soon and a nice quick rebound as they cover their short positions. Forget the talking heads, watch the chart. You had 2 warnings to get out has it pierce the bottom channel mentioned several months ago.
The Bitcoin enigma is quite strange as the gap should have been filled and it should have dropped below 28000 by now. I see accumulation on the Bitcoin ETF side, which suggest that the regular joe/jane might be starting to invest in this speculative instrument. It holding on hope right now. The great “main street” bull will run its course eventually, but its is unclear is the last bottom was the real bottom yet. The volumes are not impressive, so another drop could be in the cards. The chart look so weak and about to drop.
Gold & Silver strength has been impressive to say the least. It appears there is accumulation on the physical side by the central banks are loading, except for the BoC who gave away all its Gold. In a Sovereign debt crisis Gold become the safety heaven as a store of value. The BRICS nations understand this has they are preparing their currency to be backed by Gold reserves to support and kept their currency stable. A strong currency maintains its purchasing power against other currencies and is not affected as much by inflation. But when you have no Gold reserves the only thing that will support the CAD will be the resources Canada export. Will this be enough? Have your own protection for the storm that is coming.
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Author: Robert
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