Get SRTY: A tale of Russelled Jimmies

Good evening everyone, Long time shitposter here but this is my first DD. Will not be too in-depth or eloquent because I am not an autist savy in all the financial lingo, and I don't feel like putting too much effort into this. I have not seen this movie but it made sense with my title, plus it has Danny Devito If you haven't noticed, shit is beginning to hit the fan out there. Are we headed for a more serious correction / market crash? I think so. The 10 year treasury yield is at a multi-year high. Inflation is going gangbusters. Russia is on the brink of war with Ukraine. Omicron has left the healthcare system on the verge of collapse. Netflix, an established blue chip stock lost 20% today alone. This is not an anomaly, it is a sign of things to come. Provided we are in for a red 2022, what could be better than shorting the whole market? Shorting the shittiest part of the market. Let me introduce you to the Russel 2000 index, much like Cathy Wood's ARK ETFs, the Russel is full of shitty small cap stocks which this community salivates over due to their "high growth potential". We all know its the Microsofts and Apples of the world making the real money, most of the companies on the Russell are dogshit, who are we kidding? As you can see from this chart, the Russell has been as flat as Brie Larson for the majority of 2021. Even under good market conditions the Russell was struggling, yielding -6% in the past year compared to SPY +16%. So who will get hit the hardest by the crash that is unfolding? The shitty growth companies in the Russell 2000. https://preview.redd.it/pgsr3sz3sxc81.png?width=895&format=png&auto=webp&s=41a4072100453d3e116826a03c3ed9c58656e702 Lets talk about stage analysis. It's so simple an ape can figure it out. Stage 1: stonk is flat. Stage 2: stonk goes up. Stage 3: Stonk tops out. Stage 4: Stonk goes down. Can you guess what stage the Russell is in right now? You guessed it. It's a classic stage 4 decline. That purple line is the only crayon that really matters at the end of the day, the 200 day moving average. ​ https://preview.redd.it/xbec7wfwsxc81.jpg?width=490&format=pjpg&auto=webp&s=794ca160a70fbc311e8808a60f4ad631c1822611 Enter SRTY. It's a triple-leveraged inverse ETF of the Russell 2000. Triple leveraged funds definitely have their faults, the volatility can eat into your gains and there are a lot of fees associated or whatever. But I think the correction in the coming months/years will be one-sided enough to be worth using leverage. If you're a gigantic pussy baby you can use RWM which is the un-leveraged equivalent of this. However you feel about the market overall, you have to admit the Russell is shit, and I expect it to dump especially hard in the coming months/year. I do not have a price target, I intend to get out if the Russell makes a significant move back above its 200 day MA and into its 2021 consolidation area, otherwise I'll just let it ride, and I'm not too worried. I should preface that I have a terrible track record financially, I lost over 50% last year, most of which was from bagholding MVIS. But I used this same stage analysis to get out of that at $11.50 and now it's at $3.50, so there's that. So there you have it, get SRTY.

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Get SRTY: A tale of Russelled Jimmies

bullish

Good evening everyone,

Long time shitposter here but this is my first DD. Will not be too in-depth or eloquent because I am not an autist savy in all the financial lingo, and I don't feel like putting too much effort into this.

I have not seen this movie but it made sense with my title, plus it has Danny Devito

If you haven't noticed, shit is beginning to hit the fan out there. Are we headed for a more serious correction / market crash? I think so. The 10 year treasury yield is at a multi-year high. Inflation is going gangbusters. Russia is on the brink of war with Ukraine. Omicron has left the healthcare system on the verge of collapse. Netflix, an established blue chip stock lost 20% today alone. This is not an anomaly, it is a sign of things to come.

Provided we are in for a red 2022, what could be better than shorting the whole market? Shorting the shittiest part of the market. Let me introduce you to the Russel 2000 index, much like Cathy Wood's ARK ETFs, the Russel is full of shitty small cap stocks which this community salivates over due to their "high growth potential". We all know its the Microsofts and Apples of the world making the real money, most of the companies on the Russell are dogshit, who are we kidding?

As you can see from this chart, the Russell has been as flat as Brie Larson for the majority of 2021. Even under good market conditions the Russell was struggling, yielding -6% in the past year compared to SPY +16%. So who will get hit the hardest by the crash that is unfolding? The shitty growth companies in the Russell 2000.



Lets talk about stage analysis. It's so simple an ape can figure it out. Stage 1: stonk is flat. Stage 2: stonk goes up. Stage 3: Stonk tops out. Stage 4: Stonk goes down. Can you guess what stage the Russell is in right now? You guessed it. It's a classic stage 4 decline. That purple line is the only crayon that really matters at the end of the day, the 200 day moving average.



Enter SRTY. It's a triple-leveraged inverse ETF of the Russell 2000. Triple leveraged funds definitely have their faults, the volatility can eat into your gains and there are a lot of fees associated or whatever. But I think the correction in the coming months/years will be one-sided enough to be worth using leverage. If you're a gigantic pussy baby you can use RWM which is the un-leveraged equivalent of this.

However you feel about the market overall, you have to admit the Russell is shit, and I expect it to dump especially hard in the coming months/year.

I do not have a price target, I intend to get out if the Russell makes a significant move back above its 200 day MA and into its 2021 consolidation area, otherwise I'll just let it ride, and I'm not too worried.

I should preface that I have a terrible track record financially, I lost over 50% last year, most of which was from bagholding MVIS. But I used this same stage analysis to get out of that at $11.50 and now it's at $3.50, so there's that.

So there you have it, get SRTY.

read-time
3 min
60.00
Target Price
7/ 10
Confidence
6-12 Months
Timeframe
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