RAD - Is there such a thing as a safe SHORT?If there was ever a thing such as a safe short- I think it would be Rite Aid (RAD)
As shown on a monthly chart, RAD triple topped in 2015=2017 and has been in a decline
every since. It has shed 90% of its market cap in the intervening 6-8 years. Now, it is
fundamentally fighting for survival. This is because as a weaker drugstore retailer and
the rise of Walgreens, CVS and others as well as RAD's role in the opioid epidemic
( I have insider knowledge) RAD is now filing for bankruptcy protection against
claims and litigation which will vastly outstrip its liability protections. All confirmations
on the monthly chart ( high validity given the time frame) considered in context, RAD
is near to its death bed. The judge will be ing the rights of shareholders against the rights
of litigants ( which include Medicare, Medicaid and state governments). The shareholders will
loose and loose very badly. I will go short in a stock trade and take a large put option position.
There is no need to buy call options here for backside protection. The writing is on the wall.
Bankruptcyrisk
Gold TradingGold mid-term swing idea we are currently looking at.
The Two setups provided are to account for the recent fundamental activity which caused havoc on the global markets as risk on mode ushered investors into buying #Gold (#XAU ), and other assets like #JPY as an example.
Markets have priced in a possible risk scenario where $CS (Credit Suisse) one of the G-Sibs files for bankruptcy.
This event has a high impact on the markets due to the significance of Credit Suisse.
Today 15th March 2023 the Saudi National Bank have announced that they won't be able to support Credit Suisse further. As the bank itself has low deposits due to depositors rushing to withdraw their money the bank is on the brink of bankruptcy.
At the time of writing this post, the Swiss Government is in talks with Credit Suisse discussing a possible bail-out.
The current interest rate hikes have pushed many banks close to or over bankruptcy and due to the Fractional Reserve banking the banks have very low liquidity if any at all on their hands to cover a liquidity crunch. For example depositors en-masse run to the bank to withdraw their funds.
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