Bear Down for Midterms via /r/wallstreetbets #stocks #wallstreetbets #investing

You may think this is the bottom and that the dip is ripe for buying. If so, you are exceedingly retarded, and here’s why:

Cataclysmic technical setup: SPY has entered a death cross of its 50 and 200 day moving averages. This is a major indicator of a potential selloff. The downtrend on the chart is clear.

Geopolitical tension: Putin has proven himself to be an unstable madman, there’s no telling what he’ll do next. Most likely he will double down on the failed Ukranian invasion, leading to further sanctions and the absolute decimation of the Russian economy, the true global effects of which have yet to be felt. Even if the invasion ends, it will provide only a temporary bump to the global economy, the damage is done, Russia is not coming back from these sanctions.

If Putin goes full Strangelove and attacks a NATO country, we enter a whole new ballpark entirely.

Inflation: 8% and rising, no one can afford shit, at an increasing rate. Oil will continue to spike, crude oil prices have passed the threshold above which a recession has always followed historically.

Rate increases: Jpow has no choice now, rate increases are coming and keep telling yourself that they’re “priced in”.

Market fear rising: VIX currently above 30 and rising

Liquidity is dried up: Trading volumes are as low as they were during the March 2020 crash. The buyers are gone. It takes huge volume for prices to go up, but when volume disappears its like a boulder rolling down the cliff.

COVID 2 Electric Boogalo: Huge ramp up in cases in a number of countries right now, while we are near the virus becoming an endemic, the resources spent fighting the last remnants of the pandemic are putting additional burden on countries

There are plenty of other negative indicators I havent gone into such as the bond yield curve, rising dollar etc.

But dont worry there are plenty of positive signs in the market right now:


Oh thats right there arent any.

The easiest and safest thing right now is cash, insulate yourself from the coming recession while also not getting squeezed by a potential melt up if Jpow really loses it and keeps the printer on maximum overdrive.

But if you really wanna print money, shorting overvalued shitty companies and buying inverse ETFs is the way.

So go ahead, ignore this because “you cant go wrong inversing advice from WSB”, keep buying your shitty meme companies, buy this dip, buy the dip after that, and the next one and so on. Watch your investments becoming an even better deal in the coming months/year.

Positions: a shit ton of various short positions and 3X leveraged bear ETFs. I will cover my shorts if SPY can break above 440, and will be watching for another short entry.

The negative numbers are shares shorted, the positive numbers are inverse ETF shares

Submitted March 14, 2022 at 12:42AM by awesomedan24
via reddit