Sitting up here, a touch below all-time highs, it seems foolish to expect a bears to claw the eyes of out of bulls, triggering a disorderly rout. Yet the model I build by hand, each-and-every week inside Exodus [Want to read it? free trials till noon Monday: exodus.iBankCoin.com/free-trial] is suggesting exactly that, a high panic rout—complete with shrinking exits and investors returning to basic flight instinct.
But, not.just.yet.
Do not consider this a bold call, but rather a vision of how the next 10 trading days will transpire.
The Next Five Trading Days
Look for a hard move lower, a shakeout, perhaps a big gap down Monday. This encourages a strong responsive buy and a reflex rally that lasts through the week and into the weekend.
The Following Week
Everything unravels like we saw at the beginning of the year.
I have no idea if this indeed will happen. Overall I take it one week at a time. This week, I intend to cover my SQQQ short into any weakness I see early in the week and also perhaps add long exposure via a Utility or Staple. These sectors are likely to resist overall market downturns, and if I am wrong about the big down move I see on the horizon, these will prove decent entries.
Then, as early as Friday and perhaps as late as next Tuesday I will re-initiate shorts, perhaps in the NASDAQ or the Russell, and ideally from higher prices.
That is all.
Exodus Members, the 83rd Edition of Exodus Strategy Session is out. Go check out the Executive Summary at the least, the entire report if you want to gritty details, and let me know what you think in the comments below.
HAPPY FATHERS DAY LADS. I am proud of you for making adult decisions, wishing you good tidings and gender-neutral bathrooms for your kin.
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BB – FTW! 😉
jesus…. gap-up rally 2 start the trading session.
The .01% will not let the market crash or even go down, even schmucks with 100k Zecco accounts know this.
They don’t have a choice.
if any “single group” has that power, it’s the Chinese
Do you still see the same basic set ups taking place and if so would you modify the magnitude of week two in particular?
Quite the handle you’ve chosen Mr. wiz. The gap up sort of threw a wrench in the whole thesis, so now I am just taking it 1 day at a time.
re: the gap up to start the week