Morning all... a short post, but one that is full of dramatic events. The 'discovered naked short' from wsb is a wildfire burning...the cleanest place to see the damage is in vol. This discovered vector in GME clarified the damaged relationship between central banks and market pricing while QE infinity provides a cover a 'risk free' environment. It's very similar to the round trip explosion we traded last year from 12 to 85 and back again.
When you pin shorts (the root of all evil), whether its GME, BB or VIX... it has enormous mobility. The magic of reddit has exposed Melvin Capital,Blackrock (own +/- 10% of GME) et al, while Citadel cheerlead in the background and will of course be fine and make money either way.
Let us take a closer look at the possible moves with the VIX; I find that the 44 pivot which is in the crosshairs can do one of two things;
a) The offer can evaporate rather quickly, even if it was previously nailed by barrier, which will trigger a momentum gambit towards 85.
b) We can attack and our opponent (sellers) without any anxiety step back in to occupy the control since it is their jurisdiction, i.e. one ladder that is controlled by your opponent.
Now consider the latest chart update:
Here a) was very much dependent on the October 2020 highs. Bear in mind how unafraid the buyers which are moving with force are. The wildfires are capable of satisfying a healthy appetite from retailers. with that in mind we are going to see capitulation across some more names.
Thanks as usual for keeping the feedback coming 👍 or 👎
I wonder how you an chart VIX up and gold up. since everyone is going into $ if there is panic.
KristenDuberge
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Wow, well done
jnirenberg7
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I agree, however not quite sure what the catalyst will be as this implies a massive market correction. Right now they are still propping up the "everything is fine" narrative, will they just let the GME squeeze play out and let that bring markets down?
Carolcarr
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Brother continue to do beautiful work
Yuriy_Bishko
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😳😱
Griepa
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Great work as always. Game on.
GeorgeZii
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First of all, what a great aspect to read the FED and the WSB situation. Yet, in my first try to understand your presentation I did not get the last part of it where you explain what the 44 pivot means. Does that mean that the current situation would reverse back to 'normal' once it acts like a pivot? The FED always likes to talk the dollar up. We see a lot of manipulation on the DXY lately. Do you think that 44 or 85 level would be a barrier to the manipulation?