VIOLENCE

The magnitude of this decline cannot be minimized. We have BIG ARROW MOVES lower in every facet of the market with exception to consumer staples and gold. The old man stocks are rallying, as money rotates out from $NVDA and into $MDLZ.

We have an utter collapse in interest rates, with the US 10yr at 3.84% down 13bps.

WTI is down 3%.

VIX is +15%.

And the fucking NASDAQ is down 2.5% with the Russell even worse at down 3.6%.

This is what nightmares are made from, the sort of panic you’d hoped to skip out from and always knew it was coming. The good news in all this is there is violence in the tape, wild and erratic movements that lend itself to capitulation. What you want to see in a bottom is apathy and then panic, leading to very violent moves in stocks that had nothing to do with the overvalued condition of $NVDA and other tech stocks. Everything is being sold and it’s a Friday with war looming in the balance and there is $809b in margin debt fueling the kindling for these fires.

Unfortunately, I decided to NOT HEDGE yesterday, out of all days. I sit here a mere mortal like you taking blows down 185bps and I dare not move. I am scared to buy and scared to sell. I might hedge on a bounce, but nothing too big. The tape reminds me of capitulation; but it could get worse before it gets better.