PREPARE TO CRASH — ALL BETS ARE OFF — A WHIRLWIND OF PAIN AROUND THE BEND

I was doing some diligent research into Exodus to examine the extent of the recent sell off. First, let me explain what Exodus does for those unfamiliar. It is a measurement tool for greed and fear, juxtaposed against price action, that provides actionable intelligence thru predictive analytics. In other words, the AI watches and measures how traders respond to pain and greed thresholds, via sophisticated grading system, and then draws conclusions based on historical precedence.

I feel like I’m not communicating that well enough. I’ve had a punitive day, barely enough time to sit down and relax over a boiling cup of black coffee. Throughout the trading day, I cowered behind my 65% cash position, taking on new positions in the degenerate shipping sector.

What can I say? I’m a glutton for pain.

And here’s the point.

I went back to look at the stress levels in Exodus back in the most stressful time for stocks, perhaps ever — February of 2009, when the SPY bottomed at 666.

And now.

The big difference between then and now, of course, is that was end of world trading action — total and complete capitulation — the annihilation of western finance. This drop is methodic, yet relentless. These minor drops only make it worse, as it provides the weak with too much hope and keeps marginal players in the game. The only way we can truly bottom, once and for all, is for a hair razing decline to the downside, one that halts trading, and fucking breaks machines — men accidentally falling out windows, and buses crashing into fire hydrants.

Until that happens, I’m staying 50%+ cash.