We were ready …
for a day like yesterday and I took advantage of the gap down to buy more positions (including the SMH) practically eliminating the available cash ….
Now I have little cash and many positions with a stoploss below yesterday’s low to avoid sudden crashes that could come at any time since the moment is difficult and still critical
A chart that I would like to share with you is the one relating to the inflation cycle which seems to have reached its peak in this period ….. Refer to the article you find CLICKING HERE
A top of inflation means top of returns and of the USD: it is the latter 2 that I constantly observe because it is from those that everything follows.
DeMark suggests a full SEQUENTIAL COMBO on the QQQ, a potential top on the USDYEN which is closely related to yields at 10Y
Today I will try to add more info to reiterate the strategy of a rebound until the end of the year of at least the + 10 / + 15% that I would like to take but that does not change the medium-term scenario that still remains bearish (if it is like in 2008 the rebound up to 4000-4100 pts is compatible with a final sell-off in 2023)
For now, let’s stay on the strategy for the end of the year, then we’ll review everything
QQQ daily
The decline of the Yen (this is inverse) has been stunning and could be a catalyst for some serious market dislocation if it starts to reverse higher.
US Dollar index did have a Sequential 13 and now a price flip down with a Propulsion target of 111.55. It will take a lot to turn this trend lower
The Euro might head back over parity
