iBankCoin
I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
3,721 Blog Posts

Bunker Buster Alert: IndexModel calls for acceleration to the downside

I like the timing of this signal. Right into February. Right into a Monday where most americans are operating at seventy percent, slowed down by their big man appetite for jalapeño poppers and footballs. It is a good time to catch the drunk american flat footed.

The coronavirus was nothing compared to an IndexModel Bunker Buster. This signal hasn’t fired since 06/02/2019 and the signal before that was way back on 12/23/2018. The signal calls for price to accelerate to the downside. This can look a few different ways.

A huge gap down Monday that is accumulated all morning, marking the low for good.

The selling begins in earnest during regular trading hours, sucking in some dip buyers before the real sell hits—NASDAQ down at least -250 intra-day, likely more like -400. This sets off a multi-day sell spree. Fuckers take to CNBC entertainment news, providing the teevee audience all sorts of reasons.

Meanwhile, over here on the humble Raul blog. We simply chalk it up to the Sublime Harmony of Mathematical Precision aka S.H.O.M.P. —-a term coined by none other that SENOR TROPICANA.

I am not such an ego maniac that I will make these dire forecasts without the caveat that I may be wrong. After all, these are the roaring ’20s lads, a period of economic prosperity the likes of which no living being has ever seen. The drivers are Big Tech and their fearless leaders who would never doubt their vibes. Leaders who are generating GDP via autonomous flywheels that spit off money at margins in excess of anything those titans of industry could ever believe possible during the last roaring ’20s.

Anyhow the plan is simple. Don’t get cute. I will play for lower prices if we DO NOT start the week with a major gap down. I will not try and time the swing low. Instead I am going to deploy some fresh capital throughout the week, adding to my favorite stocks (TSLA, TWTR) and making an allotment to the RRF Motif.

Yes you heard me right, I am going to buy more Tesla. If you don’t like it, don’t look. You guys can mess around with ghetto coronavirus stocks, holding them for 4 days or whatever. I only buy thoroughbreds and I do so with no intention of selling ever, or at least not anytime soon.

I will sell some shares of TSLA at 1,000 but only because I want a solar roof.

You have, all of you have reasons why you invest and trade. I seriously doubt most of you dig deep into the reasons. Money, yes. Freedom, cool. For what? What will you do with it? Why?

Anyone reading this, trade’em well. This first week of February is setting up to be a real bear.

Raul Santos, February 02, 2020 (02/02/2020)

Exodus members, the 272nd edition of Strategy Session is live, be sure to check out the section on semiconductors. The picture on the PHLX is pretty clear and how we behave at the next signpost is likely to tell a story for the whole market.

 

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One comment

  1. Caleb

    Raul, As always, a voice of reason in shaky times. Special congrats on the long standing $TSLA long, as it was a vilified position for a long time. $TSLAQ group think took some sovs from my personal piggy bank (gracefully in the 200’s). #JCG @firehorsecaper

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