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.
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