Passa ai contenuti principali

MEGA PROFITABLE STRATEGY FOR NEXT HEAVY US STOCKMARKET DOWNLEG BELIEVED IMMINENT...

ONE OF THE BIGGEST SHORT COVERING RALLIES IN HISTORY MAY BE IMMINENT...
 
This morning we are going to look at an array of important factors pointing to another severe drop in the broad US stockmarket imminently, both factors external to it and indications on the charts for the S&P500 index (and other indices which we won't have time to look at).First it is well worth watching another classic video from Greg Mannarino posted yesterday: WOW.. ZERO Economic Activity in which he puts into words what many of us are thinking, and it's worth watching this at least a couple of times. Rather amusingly, "The Dark Side" tried to buy Greg off to shut him up, but he wasn't having it. This is how they operate – they buy you off, marginalize you, or take you out, whether you are an individual, a company or a country.Now we'll quickly look at related factors pointing another heavy drop by the stockmarket, and probably to new lows, before focusing on a way we can capitalize on this expected drop.We start with the Baltic Dry index, which was one of the factors we used to predict the crash before it started. On its 1-year chart we can see that it cratered from September through February, and after a feeble bounce in recent weeks is dropping again…

Next oil, which as you all know has cratered, with Light Crude, shown below, dropping by a stunning two-thirds just this year. In the last Oil Market update, posted on the 13th, we forecast that it would break down from a bear Flag and plunge into the low $20's, and that is exactly what has happened…

Lastly, Treasury yields are dropping again, pointing to (initially) deflation, that will be followed by rampant inflation, as Central Banks' profligacy comes out the other end of the pipe. Observe how the 10-year yield plunged ahead of the stockmarket collapse in March. Then they recovered some, which helped to give rise to the big stockmarket bounce, but now they are ominously dropping away again…

Turning to the stockmarket itself, we see on the latest 5-month chart for the S&P500 index that while the Fed's big intervention stoked a massive short covering rally, it DID NOT break it out of our expanding downtrend channel, which now looks set to turn it down into a really severe downleg, made much more likely by the factors that we have considered above.

A way to capitalize on this expected drop, for those who are up for it, is to use the vehicle that we used before, the SPDR S&P500 Index ETF, which has options with good liquidity and narrow spreads. Since SPY is a close proxy for the S&P500 index, its chart looks almost identical…

Below is a table showing suitable Put options in SPY. You can use any series to suit yourself, depending on how much leverage you want and how much risk you are prepared to assume. Note that there are more series available that are off the limits of this table. These options are only recommended for subscribers who have sufficient knowledge and experience to be comfortable trading them. They are obviously a high risk play, especially as, due to the current high volatility, premiums are high, but that said, if we get it right, we should still do very well with them.
Table courtesy of bigcharts.com  

Commenti

Post popolari in questo blog

Charting the World Economy: The U.S. Jobs Market Is On Fire - Bloomberg

Charting the World Economy: The U.S. Jobs Market Is On Fire - Bloomberg https://www.bloomberg.com/news/articles/2019-12-06/charting-the-world-economy-the-u-s-jobs-market-is-on-fire Charting the World Economy: The U.S. Jobs Market Is On Fire Zoe Schneeweiss Explore what's moving the global economy in the new season of the Stephanomics podcast. Subscribe via  Apple Podcast , Spotify or  Pocket Cast . The last U.S. payrolls report of the decade was a doozy, beating expectations and doing its bit to keep the consumer in good health heading into 2020. That's good news given the various pressures still weighing on global growth. Here's some of the charts that appeared on Bloomberg this week, offering a pictorial insight into the latest developments in the global economy. U.S. Advertisement Scroll to continue with content ...

Fwd: The Looming Bank Collapse The U.S. financial system could be on the cusp of calamity. This time, we might not be able to save it.

After months  of living with the coronavirus pandemic, American citizens are well aware of the toll it has taken on the economy: broken supply chains, record unemployment, failing small businesses. All of these factors are serious and could mire the United States in a deep, prolonged recession. But there's another threat to the economy, too. It lurks on the balance sheets of the big banks, and it could be cataclysmic. Imagine if, in addition to all the uncertainty surrounding the pandemic, you woke up one morning to find that the financial sector had collapsed. You may think that such a crisis is unlikely, with memories of the 2008 crash still so fresh. But banks learned few lessons from that calamity, and new laws intended to keep them from taking on too much risk have failed to do so. As a result, we could be on the precipice of another crash, one different from 2008 less in kind than in degree. This one could be worse. John Lawrence: Inside the 2008 financial crash The financial...

The repo market is ‘broken’ and Fed injections are not a lasting solution, market pros warn

By Joy Wiltermuth Published: Dec 7, 2019 9:35 a.m. ET Banks prefer to keep money at Fed instead of lending to other banks Getty Images Examining $100 bills. Getty Images By Joy Wiltermuth Markets reporter The Federal Reserve's ongoing efforts to shore up the short-term "repo" lending markets have begun to rattle some market experts. The New York Federal Reserve has spent hundreds of billions of dollars to keep credit flowing through short term money markets since mid-September when a shortage of liquidity caused a spike in overnight borrowing rates. But as the Fed's interventions have entered a third month, concerns about the market's dependence on its daily doses of liquidity have grown. "The big picture answer is that the repo market is broken," said James Bianco, founder of Bianco R...