Although I want to boast and taunt, I think my efforts today will be maximized by giving you a clinical analysis on what this bitch of a whore market is doing.
When I suggested in an earlier post that “this is the easiest, highest probability trade you will ever make” it was based upon the laws of science. When there is more supply of money in the system, asset prices go up. To argue about “diminishing returns” is pointless, since most of us are only interested in keeping our dicks exposed for a short while. To think the central banks would idly sit by and watch their economies get devoured by idiots in burlap suits was pathetically laughable. They call events like that “Black Swan” because they are rare occurrences, not likely to be predicted en masse.
Agree with me or not, it is my belief the “rumors” coming out about a G20 policy response is not only credible, but fact. Keep in mind, the central banks LOVE to fuck short sellers on option expiration days, to inflict mass pain. Tomorrow happens to be such a day. Look for more rumors, or actual statements, to come out soon, regarding “the mother-fucker of all bailouts.”
Earlier today, I alerted members of The PPT and 12631 of a rare occurrence, an OVERSOLD reading in 3x to the upside ETF, TNA. It flagged an OS reading on all four of our algos, despite the market being up. In the past, such a reading was met with frenetic moves to the upside, then a fade.
Have a look.
In my opinion, the correct trade here is to go against conventional wisdom: buy the whore, sell the orgasm.
For the day, I made 1.7%, putting me a touch under +10% for the year–still 10% off YTD highs.
UPDATE: Due to late day surge, TNA DID NOT close OVERSOLD on historical basis. However, it is still OS as of yesterday on 3,6 and 12 mo algos.