Safety, a great deal of it is being bought in Size.
From November 2019 to February 2020, the exact same pattern repeated.
Liquidity was removed, Banks tightened lending. The rest is history. It does
Then as now, Margin Debt had exceeded prior Highs, everyone was in and
heavily leveraged LONG.
Market conditions then, as now created immense vulnerabilities.
The potential for a FLASH CRASH had never reached this extreme then. As for now,
the potential has never been higher.
Sentiment plays an important role as well… Confidence in the everything. Not simply
Stock, but our arrangements in every manner.
These are horrific at best, by any metric.
Charts are not the end all be all. February 22, 2020 should have taught everyone this
simple edict. Accidents happen and although they may “Appear” in our Charts, there
is something FAR MORE IMPORTANT and that is the underlying Fundamentals.
To a point…
Global Equities look terrible, there is an accident ahead, a large and insidious event
that will arrive unannounced and undo what has been done at surreal expense.
It has been a long time – An extreme divergence between US Equities and Global Markets.
A large and important drop in Asia’s Equities Markets implies a contagion is developing and
with it a hyper selloff in global equities.
Divergences within our Equities Complex have NEVER been this extreme.
It is referred to as Capitulation, not by you or I – but by Global Central Banks under the
direction of the BIS.
It is near.
Extreme Caution is warranted in everything.
There is no date, there is no time to project, A day, a week and even a month.
That said, when it arrives, gains will be lost and then some.
Everyone appears to be “Anticipating” this correction. They Hedge and become
fuel for the next squeeze of protection.
This is all that is driving this market now, nothing more other than the need
for a higher Fill.
It is be design and plan.
Cash is a position, it is an exceptional one at times when one is confused or
We are preparing for it now.
xoxo – Hunter Killer
Business News Governmental News Finance News