Bull Traps Galore

The new CPI report came out yesterday and to no one’s surprise anything that wasn’t the Dollar got severely manhandled. Honestly, why anyone still falls for these bear market rallies is beyond me. So let me spell this out for you.

Anything that is not commodities or tangible assets is FUBAR right now and will be so for the foreseeable future.

WHY?

Because all Dollar denominated assets are effectively trading against massive head wind if the entire world is desperately dropping into the U.S. Dollar as a temporary ‘safe haven’.

Of course in the end the old greenback itself will be on the chopping block but we’re not there just yet, let’s cover that particular train wreck when the time is right.

Here’s exhibit A of your market melt down survival package – the long term VIX chart.

Where is it going? Who knows?! But what we do know is that it keeps bouncing off of a very very established baseline.

What that means for you is simple: Sell the rips when the VIX touches the baseline and the VVIX bottoms out in the square shown above.

My personal MOD continues to be to accumulate long term OTM spreads and sell medium term strangles, which has been working like gangbusters for us over the past year (live P&L tracking spreadsheet here).

Speaking of bull traps – bitcoin has not lost a single opportunity to frustrate anyone still foolish enough to HODL.

In case you wonder: What I define as a bear trap is a juicy looking advance off a floor pattern which turns on a dime and then falls off the plate.

There are only two ways to trade a market like that.

1) Buy BTC near $20k and then come back in 2023 once the final toilet flush has cleaned out the last living bull.
2) Trade the swings via my new Crypto Salary System and PROFIT!

In case you forgot: This is how banking easy coin looks like. And no – this is NOT a backtest, it’s purely forward traded LIVE along our beta tester group.

17R on a $100k account means $17,000 in profits in less than a single month. I could certainly get used to that.

Thus far the system has actually been beating our backtest results, which is a great omen for what lies ahead.

If you want to learn more about the system watch me run through my daily routine it right here in under 7 minutes.

Better yet – sign up to attend my live webinar on September 22nd where I will teach you the entire system – all the rules nothing held back – for absolutely FREE.

If you are serious about building your own crypto side hustle then you want to join our community and give it a go.

See you on the other side.

  • Mike
  • a couple of weeks ago

About the Author

Hey there, I am one of the founding members of Red Pill Quants. I used to work as a systems engineer in Silicon Valley until I left the industry in 2008 to become a full time quant trader. It's been fun ever since.