Key insights
- The author believes the market has reached a top based on technical analysis and sentiment indicators. They predict a pullback to the 6,900-7,000 level, followed by a rally into year-end. The author suggests adding LEAPS during the pullback and warns against panic selling. They are currently holding short positions.
I am officially calling the top, and I think we will have a sharp pullback to the 7,000 handle area, maybe even touch the 6,900 handle (cuz why not 69), then shoot back up again into year end.
If you look at the chart, we just had 2 months of green candles and the index is starting to look like a big green dildo that is ready to ejaculate (many of you regarded bulls even fantasize about it). But if you really think we are taking off from here, you are very wrong and will become exit liquidity.
I think today is when the market came. Micron blasted 20% in one no-news day and hit a $1 trillion market cap, and the space fucking retards are richer than God. Getting soft and mean reverting back to flaccid is almost inevitable after cumming this hard.
And as you can see, we have the Wendy’s dumpster graph above the 7,600 level (this means it’s a bull trap).
Because of the new Fed chair and the NY Knicks making it to the finals, this is the biggest evidence that the flaccid downside is right around the corner. But you need to pay attention to the drop. By the time the index drops below 7,100, all of you regards are gonna panic again, and panic selling will only give away your returns and wives, so don’t do that.
If you see the gae bear graph below 6,800, that means it’s a bear trap. So if you panic sell like a regard, you will look dumber than the bag holders who bought the 7,600 top, and both of you will meet in the dumpster.
And if you look at the right side of the graph, the balls and hair both indicate we launch again from there. I personally will load some calls at the bottom with my put profits and ride into the sunset. But I still think it’s a good time to add LEAPS in the right-side ball sack area.
As for positions:
I still hold most of my shorts (took profit on my SPX puts last friday and added back 1 XSP Put spread today & will add 1 additional put spread each day till the big drop)
VIX Jun 17 25/35 CALL SPREAD SOXX Jul 17 480/400 PUT SPREAD MTUM Nov 20 290 PUT
XSP Jul 17 745/720 PUT SPREAD