WTI is up more than 4% now.
This is what I’ve done so far.
I closed out my short bond/euro trades since they were meant to be low alpha hedges which turned out to be pretty high alpha. I had done some trades early going — long and short — all profits. I am now 16% weighted in GUSH, in the hopes of a small pocket, or respite if you will, spearheaded by the fact that oil cannot be checked.
We are now in the inexorable position is ramping commodities and a very strong economy — paired with rampant inflation that is causing anguish amongst people on fixed wages. Because of this, we are in a very vulnerable position for equities and I’d be SHOCKED if the market didn’t close at the lows for the day, ahead of the long weekend.
With the NASDAQ down already 350, there is room for a 50-75 point move — but I would not suggest that is a high probability play. Breadth is hammered lower at 25% and that’s only because oils are up.
Breadth for tech, for example, is 16%.
Botton line: prepare for a raping or two, if you’re buying tech into this crash.
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GUSH up here? Greedy bastard.
We have returned to risk of weekend suprizes, when insolvency happens. CS and DB are zombies that mark to market might easily unveil for instance.
Debt – not inflation adjusted
$1 trillion 1776 to 1981
Reagan + $1.8 trillion
George H.W. Bush $1.5 trillion
Bill Clinton $1.4 trillion
George W. Bush $6.1 trillion
Barack Obama $8.3 trillion
Donald Trump $8.2 trillion
Biden $xx.x trillion
Current: $31 trillion
No worries. There’s a debt ceiling.