IanSinclaire

DJIA - SHORT; SELL it right here!!

Short
CBOT_MINI:YM1!   E-mini Dow Jones ($5) Futures
Be prepared to SELL (short and hold) it for good!

Comment: ... as for context, two simple facts;

1) Margin debt – the amount of money that investors have borrowed in order to buy stocks – is now at the highest level in history, not only in absolute terms, but also relative to U.S. GDP.

2) The present ratio of total U.S. equity market capitalization to GDP is 2.63. (as in: 263%!)
The historical norm (not the low!) is 0.78. (Which is about 70% below the current level.)
Comment: This is the DJIA / Gold Ratio;

Comment: While the Dow - above - should fare the worst of the 3 major US indexes,

S&P500

The Nasdaq
that should end up being a little difference without much distinction.

However, where the difference between equity indexes is likely to be (remain) substantial, as well as what is to continue to be the best equities-based trade out there, is this one;

SHORT the DJIA/Nikkei225 spread.
Trade active: SHORT
Trade active: SHORT
Comment: Double up on those SHORTs!
Trade closed manually: FLAT - for now; +280
Trade active: SHORT
Comment: Expanded SHORT Price Target
Comment: DJIA comparisons with other, worldwide indexes;
Trade closed manually: FLAT - for now; +703

Comments

Agree with you 100% im heavy short /YM & IWM
Reply
IanSinclaire Bearish-Bulls
@Bearish-Bulls, This is the time and place to do it! Cheers
Reply
Logic would say this is correct but the Fed would beg to differ.
Reply
IanSinclaire SilverChad
@SilverChad, They can beg all day long, they still would need a tad more than just a Fed. to hold up a 2.63x GDP (current) market cap! - Like an other planet.
Reply
SilverChad IanSinclaire
@IanSinclaire, they have a digital printing press
Reply
IanSinclaire SilverChad
@SilverChad, Again, a $7.8 Trillion balance sheet vs. a $65 Trillion market cap. (and an other $150 Trillion or so in unfounded liabilities.) Perhaps a little too much faith in that press, no?! But should that not be sufficient, in itself, the margin calls(forced liquidations) ought to finish the job.
Reply
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