No trades to report, but I thought it would be helpful to explain why.
Below is a chart comparing the price action in SPY over the past 6 months, to an analogous series over 12 months leading into September 2008, only sampled every two days so that they line up (things go twice as fast now don't they?).
In short, today feels very much like late September 2008 to me.
The CPI report on Friday was perhaps the trigger that might cause the collapse, but I think the underlying cause is crypto this time.
My thesis is that the high cost of energy is killing energy intensive Bitcoin, and with lots of leverage in that space, we're getting some margin calls now. This could mean a vicious cycle of selling so I don't want to step in front of that.
Good luck.
John - very interesting insight! As always, I appreciate your work and writings!
John - good analysis, wouldn't you say that the CPI report is what triggered the crypto collapse though, which is triggering the new collapse in equities and bonds? Especially if we consider how crypto was being propped up by whales (if we are toe assume that), then the CPI report is what sent them running
Thanks for this update John. That is quite the chart!
Talking about crypto, views on Celsius and its implications on the market?
Maybe it is time to change the name to more sellers than buyers :)