Yield Curve. Stagflation. Fed Rate Hikes. World War. Oil Prices. Pandemic. End of Stimulus. Evergrande. Margins. Unwinding. Rigged Markets. Fake Markets. Bubble burst. Bear Markets. via /r/wallstreetbets #stocks #wallstreetbets #investing


Yield Curve. Stagflation. Fed Rate Hikes. World War. Oil Prices. Pandemic. End of Stimulus. Evergrande. Margins. Unwinding. Rigged Markets. Fake Markets. Bubble burst. Bear Markets.

The Market backdrop is rife with fear: inflation and/or stagflation, continued fed interest rate hikes, a historic yield-curve inversion, geopolitical conflict, unreasonably expensive oil prices, destruction of Ukraine, economic destruction of Russia (#10 economy), taxing of China (#2 economy), Evergrande, Margin Unwinding, Depletion of Stimulus (globally), an evolving Pandemic, and runaway national debts

Bank of America is now warning that the ‘Bear Market rally’, otherwise known as a short-term Fibonacci retracement in the upwards direction of a macro downtrend, is done. Therefore, they’re calling for a continued de-risking of equities and risk-on assets. Based on my independent analysis above, I am in agreeance with BofA. Too, the London Metal Exchange (as backed by J.P. Morgan, bailed out their short-sellers at the expense of everyone else). This type of destruction of trust in markets could very well spread to the U.S. where investors are already skeptical about the Fed’s correlations with short-selling bad actors in the market who are actively being investigated by the DOJ. As we can see daily, the Fed’s reverse repo ‘overnight’ program has been exploited on the order of $2 Trillion this is in combination with a $10 Trillion Fed balance sheet, new requests for $6 Trillion budgets, and $4.5 Trillion Fed private 2019 bailout of Wall Street banks behind the backs of American taxpayers.

Further, it was shown that Barclays was fined half a Billion USD for over-shorting VXX which is an ETN that is associated with volatility and S&P 500 futures. They literally short-sold 15 Billion USD of this volatility ETN BEYOND their $20 Billion limit as required by the U.S. thereby creating false ‘stability’ pressure (yes: using wide-scale short-selling phenomena to subdue an important volatility ETN that was connected to the entire market system, to induce fake macro market stability during a time of geopolitical conflict, in order to put on a front of western market stability in a way that simply did not make sense to economists). Now, they have several weeks to months to buy back all of these shares, or face blacklisting from U.S. regulators. Like the XIV scandal in 2018, this will surely add to the volatility in markets going forward.

“One small single event can trigger an unstoppable chain of events that gain momentum with increasing force, and nothing is ever the same.”

I am hedging for this in five ways: 1.) holding cash and gold, 2.) holding antiques, 3.) shorting overvalued stocks, 4.) going long in volatility ETNs, 5.) shorting the NASDAQ

Submitted March 30, 2022 at 06:24PM by Thump4
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