This is my read of the tape heading into the Trump inauguration.
First off, if you recall, as it became clear Hillary would lose the general election, the markets went completely apeshit.
The peso was fucking destroyed.
But by the time your average self-directed investor could put an order into the market, aka cash hours, most of the panic sell-off had been recaptured.
Since then we are about 500 NASDAQs higher.
Enter Pepe the slow-boil frog:
I cashed out a few positions into year-end. Lots of people do that. I watched it go down on my streams. Some for the tax loss, others just to have cash to initiate fresh positions into 2017 ideas.
There was a recurring theme, and to be honest, I’ve participated in it slightly—hold some cash until after the inauguration because the world will end when the orange pussy grabbing gorilla takes the helm.
GOLD—GET GOLD cuz it’s good for trading in doomsday scenarios. These people started being taken seriously again. I’ve seen it with my own eyes and interactions. Not fake news to me.
Meanwhile, on January 4th the equity complex tipped its hand and the algorithms inside Exodus picked up on it.
So when the Sunday Exodus strategy session spit out e(RCS) bullish readings two weeks in a row, a signal that alerts to the high probability of a calm drift, the idea of slowly boiling anyone not long enough or worse, short, became even more tantalizing.
Then Thursday, today happened, and it has all the markings of a trap to my eyes. I’ve annotated the events as simply and minimally as I could below:
What happens next?
Well, I’d like to defer to my Sunday research. The primary thesis heading into this week is still live:
Could I be wrong? Yes, but this is my hypothesis heading into the Trump inaguration.
BULLISH.
If you enjoy the content at iBankCoin, please follow us on Twitter
