POTENTIAL 20% DUMP ON THE CARDS FOR XJO Calling a major top and new leg down starting tomorrow.
All the stars have aligned, perfectly positioned short (August 18th expiry - solid black vertical line) on Friday 4 points from the top (pink horizontal line).
Couldn't be happier with this bet. If it breaks down weak resistance at 6763 in a few days then we're off to the races! If it reverses and confirms itself I will close out my puts for a modest win and wait 2 weeks. If it reverses it may reach 7011 and then BOOM, down! I doubt it though.
Some big fish, likely a Hedge Fund, agreed with me though filling an order in the queue for 350 contracts for $3.4 million. If it pulls off for them they are looking at a gain of $1.8 million profit for 3 weeks work..Oh how the other half live!
By that time any rally will have definitely run out of steam, I'll reposition and have another crack at the September expiry. I will go as far as saying that we will then see my contention validated 100% without question for the monster 20-22% dump . At the moment I would give an 80% confidence rating for this dump that the cascade in price action begins tomorrow.
Interestingly the 6851 level we just passed last week was the Blow Off Top reached in the XJO at the peak of the Market (Nov 2007) prior to the biggest dump in modern history , the Housing induced Credit Crisis of 2008. How's them Apples..?
The Markets can only bear so much "Fed pivot" fantasy talk until Wall st & CNBC analysts wake up, smell the economic coffee and any notion of a Market bottom being in and the Fed Put riding to the rescue this time will be dispelled as the absolute QE Hopium bunk that it is!
If the Fed and/or the RBA takes that dangerously irresponsible/economically unthinkable path and capitulates or even relents on taming the WILD inflation here and across the World then you know "they" are DELIBERATELY trying to collapse the Real Economy and we NEED to prepare for HYPERINFLATION . This will facilitate widespread acceptance of the Totalitarian CBDC's and usher in The Great Reset which is a fancy way of saying a digitally enabled Global Communist Police State. Prepare NOW!
God bless and all the breasts!
xxCM