Relax. There's a fatass short squeeze coming to a theater near you (imho). I just think there's a good chance we need to poke 4K on the S&P first based on my charting. Always subject to change of course. Stay nimble!
It’s possible… I expected that inflection point pop off 52.50 swing lo… Friday session was nice and orderly… I feel We may be getting a nice pop in Vol… whipped up markets make for great opportunity intraday both North & South.
Over the weekend, I dipped into my library and read “ when genius failed” by Lowenstein This was the LTCM blowup that threatened the financial system back in ‘98… whenI was trading firm capital/ OPM … my 2nd time reading this book.. it’s a great read for anyone that enjoys reading market history! Particularly about hubris, risk & leverage!
They were primarily bond arbitrageurs… primary Bet was reconvergence on spreads .. Treasury’s, swaps, derivatives, Italian paper, etc yet leveraged at 34:1… requiring no hair cuts on their trades as everyone and their brother competed for their business as they boasted unreal returns …. Truly great read… particularly on risk alone!
could you also view it as a failed breakout of the range 4280-4400, so a possibility of testing 4400 or 4460 before heading south again?