Monthly Archives: February 2021
Wipeout
I promised you impending drama on Monday and Ms. Market decided to ship out a whopper via next-day delivery. Unlike many of the muppets who pride themselves to be market analysts I am among the few who admit to have zero prophetic abilities. But frankly you didn't have to be Cassandra to recognize the divergences that had been accumulating right in front of our eyes. Read More
The Pressure Cooker
Another flat week in stocks with crypto crosses shooting toward the moon. The main event on everyone's radar of course were the congressional hedge fund hearings during which we learned that the entire financial industry was squarely built upon the premise of uplifting retail investors plus each future stock purchase would now qualify for a free copy of the King James bible. Read More
Swing For The Fences
It's a short trading week and on average they do tend to be a bit sleepy due to a lack in participation. This was evidenced by the reduced weekly trading range stats I posted on Monday. However the gyrations we've seen thus far are tantamount to running in circles, which potentially opens up some interesting low probability profit opportunities for us. Read More
The New Old Normal
Implied volatility has been dropping faster than an ACME anvil over the past two weeks, which stands in stark contrast to what I am seeing in the bonds market so the jury is still out whether or not we are looking at some bifurcation here (strange things happen sometimes) or if risk is being improperly handicapped. If it is the latter then we may see another Gamestop type situation unfold in the near term future - if it's the former then retail traders are about to get a wedgie of biblical proportions. Read More
How To Escape The Squeeze Box
A longtime subscriber wrote me the other day thanking me for the opportunity to grab $TLRY right before it kicked into short squeeze mode and exploded higher. In his words: "Not sure if you’ve seen but $TLRY short squeeze is in full blow status. It’s now pre market at 65ish. The only reason I got into it was because I followed your Short Squeeze setup. I got in at 22.61!! I only had a small position, but it’s going to pay for the cost of the strategy probably about 3000%! And it was a textbook entry on your system." Read More
You Got PUNKED!
So my wife comes running to me a little over a week ago with that determined look on her face which immediately tells me that I'm in big trouble. "Mole, drop everything you do. We've got to buy silver! A LOT of silver!" No she doesn't call me Mole but it's my story and I'm sticking with it. Anyway, I immediately realize that I better tread carefully now. "Why is that again, my dear?" I ask innocently. She puts her hands on her hips, rolls her eyes, and retorts: "Well duuhhh, EVERYONE is talking about it right now - it's going to explode higher!" Read More
The SKEW Must Flow!
An old friend wrote me over the weekend asking whether or not it was finally time to back up the truck and short the heck out of this market. My response to him basically boiled down to 'never step in front of a speeding freight train' - however true to form I did provide him with a few valuable pointers. Which I thought may actually make for a good post, so if you happen to currently suffer form bearish inclinations I suggest you put down your mobile enslavement gadget and pay attention. Read More
Can You Spare A Dollar?
Just ask the Fed and the answer should be 'how many trillion would you need'? Which why it's a bit puzzling that the old greenback actually seems to be bottoming out right now and may even be getting ready to put the squeeze on all those degenerate Euro fanboyz. As you can imagine the thought of not being taunted by my local ATM anymore fills me with much glee. But in the context of the overall market situation we've got a few charts to review. Let's get to work. Read More
