Late Day Collapse Cannot Stop the Buying to Come

Typical end of day COLLAPSE on mid volume and breadth. It was easy to imagine this could happen. However serious you might take it, I would advise you to avoid being fooled again — for we are heading higher.

Even so, I took out some hedges in UVIX and SOXS for a just in case scenario. I gave back a little, closing +195bps — now boosted by a PERMANENT BTC position at 5%. I will permit that position to balloon no greater than 10% of assets. The rationale for having a BTC position is a conservative one rooted in the belief that when the dollar loses reserve status and falls under 50% of all trade, we might start to see a profound weakening of the dollar leading to an eventual collapse. Under such a grim scenario, people will flee for BTC and we can see the price of cryptos skyrocket way past anything you ever imagined. I can see this scenario playing out following the inevitable defeat of NATO in Ukraine and potential embarrassment in Taiwan against China.

We are led by un-serious people and their plots and schemes are spiteful and not coherent. They are not all knowing, but instead incompetent. I will continue to play the market in front of me — but know the eventual path is towards perdition and ruin.