I have done the research and I have the documents. The QQQ’s are down 4% for the week. Expect another 2-3% down and then a rally born in hell will rise up and smite short sellers. CRM is off more than 10% for January, an oddity of sorts. MAX DOWNSIDE for CRM, if I was betting, will be -15%. If we get there, which we should if the NASDAQ drops another 2-3%, go in.
I suppose we’re heading into a bear market and I suppose no one understood stagflation was the prime threat. But here we are with stocks telling us growth is slowing and at the same time rates are increasing. The misdirection is largely in oils and banks — oils strong due to inflation and banks up due to widening spreads thanks to higher rates.
Everything else went to shit.
With losses mounting in areas traditional to retail, one has to wonder what future a stock like HOOD has, given their customer base is now bankrupted
I am 100% cash, up 10bps for the session and I, once again, squandered an opportunity, as I entered the session net short. I covered my shorts and my longs because I just didn’t want to partake in the chicanery. However, we fast approach a mean reversion level in Stocklabs which will be a call to action for me. The next big move is NOT on the downside, but on the upside. Having said that, I would not be so confident at 11am and I would not trust being too long into Monday, since all of the finest market crashes have occurred on Mondays. Perhaps buy a little into the bell and nibble some more after the market opens down 25% on Monday.If you enjoy the content at iBankCoin, please follow us on Twitter