Warning this is a LOOONG post, with the post I started on friday at the end of this post.
Well today/yesterday was a doozyI had to periodically check the carnage from my phone(Glad I havemoomoo).I have to give a bigSHOUT OUT & THANK YOUto the Farm Report! without it I may have been set up wrong yesterday. You see I thought the drop in oil would've caused a drop in the CPI, but when I tuned into the Farm Report they said No No No inflation CPI would beHOT,I thought it was crazy, but i know to follow the farmers, so i went short Monday at close.*funny story: i opened an account today, saw TQQQ and almost had a heart attackthinking I hadn't sold them all, then opened it and remembered I just switched from call to put
Anyways, I have been touring some of the best farmland in the world the last week(we are building a giant decant facility for a town and the surrounding population and livestock).and I don't like what I see(I mean its beautiful, but there is a storm coming)Money is tightening up everywhere, and I saw something I have never seen there before - For Sale signsI mean I would love to buy if it wasn't in that stateBut I digress. There isSTILLa major lack of materials, and labor labor labor plus prices are crazy with everyone chasing them *because in the commodity world youHAVE TO chase them,why? because if you don't have them you dont work if you dont work you dont make money if you dont make money you dont eat. This is whyiamBEARISHand have been,iamBULLISHcommodities*but not yet*other than oil, Nat Gas, Uranium, Fertilizer and Food. Those are ok to nibble on.
Let's look at some charts, I can bet without really looking - I bet we sold down to support - just in time for the PPI number, just a hunch, let's see. The PPI will decide what the market does.
Dollar$USD (USDindex.FX)$The dollar will crush Multinationals, Gold/Silver, Steel, and other commodities.
$Invesco QQQ Trust (QQQ.US)$This is where you short any strength. I expect CHOP because of quad witching friday before a true direction (down) is decided.
Not much for charts here, I apologize there is so much to share, and iam too busy to share it all... Oil has an 80 bottom I like energy still, Nat gas is consolidating for a big winter run. My advice would be to stay away from anything longer than a day if you play swings.
As always
Good Luck
This is the post I started on friday and never finished - so much to say so little time. Take from it what you will
This is going to be a follow up to recent posts, about theDOLLARtheFED,OIL,GOLD/SILVER,BABA,CLFtheQs &CORN...I started this on friday so the USD chart is not up to date but I'm sure I'll put an up to date one in. Some of my comments are out dated also for example I have soldKOLD.
First offiamabsolutelyBEARISHon the major indicies especially tech, yes even big tech!
That doesNOTmeaniamALWAYS bearish. in fact I just made a killing buying TQQQ Thursday and holding over night. I did the same with BABA OIL SLV and CLF. iam still holding BABA and some TQQQ, I plan on selling the TQQQ on Monday, iam holding BABA to see if it's going to breakout or delay again.
iam EXTREMELYBULLISHon COMMODITIES
But that doesNOTmeaniamalways bullish. I was shorting CLF up until Tuesday and OIL until Wednesday. iam still short NAT GAS via KOLD. I trade commodities on momentum, when momentum turns so do i. BTW I plan on selling KOLD.
Now that that's done, let's look at the big week ahead.
Well we are going to drop and drop hard, but will it start Tuesday the 13th when CPI data is released or the 21st, 22nd when JPowow makes his .75 point interest rate hike. I know I said the market predicted .5 and they did, until he spoke this week, then it instantly went to .75 and the market dropped before rallying again - why did the market rally? and again today?
There are 3 thoughts occurring right now
1.) The FED is going to miraculously make a soft landing. They believe Powow will somehow land this and so they are sitting mostly cash, nibbling on value and investing wisely in good companies. They are waiting on a lower CPI to show that JPow can relax raising rates at the high rates. - I believe these wise investors still get wrecked.
2.) the FED is going to screw up and overtighten crushing the economy. - These are perma bears and the rally's are meant to catch them off guard and wreck them.
3.) the FED can't win and never could, they created a MONSTER without any idea how to control it - HELLO FRANKENSTEINs MONSTER. These are generally Dollar Hawks, Gold bugs and commodity traders.iamclearly in this catagory (I have a theory of why commodities traders overwhelmingly fall into this category- because a commodity exchange COULD be complete without any currency. ie I will give you 100oz of gold for 1000 barrels of oil. a true exchange free from any government control ie No you have to exchange 100oz of gold to dollars and then buy 1000 barrels of oil with dollars)
Now let's explore further starting with a look at theDollar
Worldwide the dollar is used as the medium of exchange, that means wherever you live if you want to buy oil or do any other business internationally you have to exchange your currency for the dollar. Let's see how that's going for the world, here are some exchanges - the lower these currencies go the more of them you need to buy a dollar.
Japanese Yen: Ah yield curve control - and this is what theFEDpetitioned for.
The Euro - the ECB (Europes FED) just raised rates a historic .75 - at this point they are throwing ice cubes into a volcano - their only hope is the decline of the dollar (will they remain allies when their economic solution is the dollar decline???).
Australian dollar: Holding up relatively well, because they are not as leveraged in American debt. - but when China starts to unravel so will this.
The currency war belongs to whomever can raise rates theMOST- think about it logically. If you have the ability to pay a higher interest more people (countries) will be willing to hold your currency.
So how is the US ability to pay on our interest rates? well we are 32 Trillion in debt and at 3.5% that is $1,120,000,000,000 in taxes that must be raised every year just to pay the interest on our debt... Wonder why they need 87,000 IRS agents and want to arm them? The squeeze is coming - this is what we the people have voted for - if you believe that sort of thing.
Remember - the founding fathers started a revolution over a 3% beverage tax!!!! They would regularly harrass and persecute the tax collectors seeing them as unjust, where as we continue to allocate BILLIONS to them and empower them to harass and persecute us.
The founders would 🤮🤮🤮🤮 if they saw what we did to their grand experiment. We have willingly handed control to the very people they warned and set up a CONSTITUTION to prevent. THERE SHOULD BE NO FED, GOLD SHOULD BE CURRENCY, THERE SHOULD BE NO INFLATION EVER!... you can't print gold into existence. Therefore you CAN'T overspend - the need to overspend is what collapses every superpower in the history of always.
Commodities are real value, you will always spend or trade for them. Let's start with the first, the biggest and most important OIL
OIL started the industrial revolution and is what propelled america to the super power we are. Funny the current administration wants to cut the very source of our power - power has since been transferred to our military but right now if you were a world leader would you agree touse the dollar (remember it will send you american inflation) in exchange for America's current military protection?- That's a hardNOfor me, believe me this very question is being contemplated by nations as I type.$Crude Oil Futures(APR5) (CLmain.US)$Oil should be bottoming, it is in a downtrend still, I believe it was a false breakdown - but I could see oil flash crash(I predict it for gold/silver so why not oil??).iamstillbullishOIL -I just DO NOT TRUST THE MARKET right now. To be perfectly honest iam hedging my positions, only for a time, until we turn confirmed bullish on the indicators.
iamiam
OPThelord
:
no it's actually good timing the market is green. just give yourself time if you do options, if your just buying SQQQ then jump in the water is warm.
07140918 : Very good analysis as always! Great thanks!
warrior-sailormoon : Thanks for ur sharing iamiam
Thelord : Is it too late to go short now?
iamiam OP Thelord : no it's actually good timing the market is green. just give yourself time if you do options, if your just buying SQQQ then jump in the water is warm.
mrbenje : Thx iamiam great analysis