We may be at the start of a market panic. ---Start Scene Part 1--- Omicron has arrived to meet "nontransitory inflation" in a romantic Italian restaurant for dinner. Darth Powell has also arrived to slay the beast of inflation. The ensuing scene might represent a scene from Tarantino's Kill Bill movie. ---CUT Scene Part 1---
In any case, I sold all my holdings on Monday, 3 hours after the market open.
Why am I out? 1. It has been a great year, and the advantage of being an individual investor is that you can liquidate everything to seal in a double-digit win, and sleep better at night. You do not need to report to investors. 2. There is more short to medium-term downside than upside right now in the market. 3. Sure profits are good, but the economics of inflation, supply chain constraints, and ongoing pandemic will impact at some point.
For anyone using my Crash Detector Script or my MOSES System, beware, it is incredibly tough to spot knee-jerk panic in the market. Those systems are designed to detect the biggest systemic crashes. This is not a systemic crash, this could, however, be a ten percenter or more from these levels.
Notes on the Chart KST Negative Divergence. RSI Turning Negative ADR Advance-Decline Very Low.
I am not suggesting you sell. I don't give advice. I am simply telling you what I am doing, and my thought process.
The psychology of trading. I am out for now, what does that mean? I can sleep better at night knowing my 25%+ gains for my entire portfolio are safe. When one is out one cheers the downside.
Choose Your Ending
---End Scene Part 2 - The Happy Ending--- The Fist of Fauci arrives with Captain Moderna and Brigadier Biontech to finally slaughter Omicron. Inflation is put to sleep by Powell's lightsaber. We all live happily ever after... until the next superhero movie crisis. ---CUT Scene Part 2---
---End Scene Part 3 - The Bad Ending--- It's a trap, Omicron and inflation have devised a dastardly plot to remain with us long enough to cripple our continuous growth. Humans and the free market will prevail, but at what cost? A 10 to 15% drop into spring and summer? ---CUT Scene Part 3---
@TradingView, OMG, Tradingview replied him hahahaha
tacosaurus
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lol, while I love your points, this was super entertaining to read! gg I think spx 4740 will be the market high for 1-2 years to come....
jasonrappa
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ok I choose end scene pt 3 (bad ending)
If I wasn't doing so well with puts and bearish calls i'd be pissed right now. But with 65% of my portfollio in options I'm riding this shit storm down and taking profits along the way.
Side note: the United States has yet to report 1 single case of Omicron yet equities have had billions shed from their market capitalization.