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May 1, 2022
[2 min Read]
The markets are teetering right now and in the most vulnerable state we've seen them in possibly decades. The Fed has been cheating the market with artificial liquidity to suppress volatility and deceive the system to keep things intact for years. Anyone who has been watching for the past few weeks has seen the control being lost as this slow motion rug pull has been unfolding. The writing has been on the wall for some time, whether we want to accept it or not. Things are going to get worse, likely much worse. We can sit by and hope, or we can try to collectively influence how fast it happens.
It's about time that we try and flip the script for once and pour some gasoline on this smoldering trash can they've been calling our markets. How you might ask?
Retail has a rare opportunity in the month(s) ahead to exploit this delicate fragility to pressure the Fed using their own market control apparatus. Our weapon: A unified weeklong retail exodus against long positions and movement of funds onto VIX and its' derivatives alongside collective spy/index puts as it climbs-- and to do so immediately after they exhaust efforts to stabilize the market this coming week.
Positions: start slowly liquidating and exiting all bleeding longs(Except squeeze plays) on Monday afternoon en masse and keep an eye out as the Fed is forced to release containment on market volatility, we exacerbate the pressure for price control with a sustained increase into call/share volume on VIXY/UVXY/VXX. And then pile on with SPY/index short puts once VIX containment efforts bottoms out towards end of day or following morning and begins to release.
To be entirely clear, we will not be forcing anything to happen that wouldn't already. This process is going to play out, whether we participate or not, we will merely be accelerating the gas pedal. The Reserve is wrestling in a losing battle with VIX control to maintain market stability entirely on their own volition. The demands of the tightening event currently taking place will incur much of the debt that the Fed has held within the market to continue to be absorbed back through the indexes to which it supported, the effect of which will be VIX moving in one general direction until complete.
A collectively informed retail has the ability to help force feed a process that is already underway. Buy your positions back in a month, they won't be taking off without you anytime soon.