This is analysis is a combination of my unbiased opinion on the current psychology of the market and how market makers play around overcrowded trades.
1. Longing stocks is overcrowded at the moment but its currently unwinding
2. Shorting the DXY is overcrowded so it obviously goes up instead and big players hedge their bets from Stocks/VC stuff into DXY and treasury yields for the time being until they can fill some lower bids
3. Tax season has historically led to periods of consildation/correction so this makes sense to bottom near the end of the tax season.
In the markets, EVERYONE gets fucked until the FEW remains. Diamond hands yadda yadda wutever, if you are long assets and buy the dip here, you will be very well off in the next 6 months. Everyone is right about the "stimmy" and inflation increasing asset prices but not everyone can profit. Shakeouts must occur on both ends of the spectrum: long and short.
1. Longing stocks is overcrowded at the moment but its currently unwinding
2. Shorting the DXY is overcrowded so it obviously goes up instead and big players hedge their bets from Stocks/VC stuff into DXY and treasury yields for the time being until they can fill some lower bids
3. Tax season has historically led to periods of consildation/correction so this makes sense to bottom near the end of the tax season.
In the markets, EVERYONE gets fucked until the FEW remains. Diamond hands yadda yadda wutever, if you are long assets and buy the dip here, you will be very well off in the next 6 months. Everyone is right about the "stimmy" and inflation increasing asset prices but not everyone can profit. Shakeouts must occur on both ends of the spectrum: long and short.