I had been short all day and I just closed those shorts and moved to 90% cash, locking in +228bps for the session. I did this, not because I was scared or because I was bullish, but because I could.
I fully intend to crash the close and gun for even more, hopefully at a higher price point.
The problem with shorting into NASDAQ -320 is shorting into NASDAQ -320.
The overarching trend in recent months has been SHARPLY HIGHER stock prices upon any and all dips.
What has changed?
The Ukrainians suffered their worse killed in action count to day yesterday, following the murder of Darya Dugin. I believe this provocation cements the fact that Europe is going to be forced to endure energy shortages this winter and the United States will be forced to deplete its weapons stores and Russia will be forced to conduct a brutal war and expense and potentially face an even greater conflict with all of Europe.
The fact that bond yields are once again rising lends credence to the idea that the recent reflation in asset prices worked counter to the Fed’s preferences and the only way to truly defeat inflation, dare I suggest, will be to completely destroy the stock market and western finance as we know it.
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Sounds logical …if you believe that the deep state and their Fed is serious about defeating inflation.