Dip Buyers and Options Sellers Beware- The Havoc Is Just Beginning

Since the election, we’ve sounded the alarm, the new administration is laser-focused on dismantling government bloat, no matter the cost. And while this reckoning is long overdue, it won’t come without pain. We’re entering a period of transition, one that will test the resilience of markets, economies, and investors alike.

But here’s the real kicker- the foundation of our economic growth has been rotting for years. Remember when $1 of debt could generate $4 in GDP? Well those days are gone. Today, we’re living in the era of negative debt-based growth. Last year alone, debt surged by $2.2trillion, while US GDP grew by just $1.5 trillion. That means for every $1 we borrow, we’re only generating $0.68 in economic growth.

This isn’t just unsustainable, it’s a ticking time bomb. Negative growth, compounded over time, is a vicious cycle that can’t be ignored. The question isn’t if the system will break, but when.

The game has changed. The question is, are you ready to play by the new rules?

Here at Magnelibra Trading & Research, we strive to make you aware of all the exogenous inputs that cause markets to move up or down. For many weeks we have been banging the drum about large accounts selling behind the scenes and absorbing billions in retail flows. This was occurring both in the high flyer mega caps and the Bitcoin markets as well. Our subscribers saw our charts almost every single day, all pointing to the same theme, some serious consolidation and clues were unraveling about to unleash a new round of volatile market movements.

Now we can tell retail is bailing in droves and these flows are overwhelming the markets as fast money and mechanicals start front running the selling, this further exacerbates the selling. We also have the mountains of conditioned option seller, premium writers who continue to sell each and every tick hoping to get some sort of value to at least make the losses palatable. We know this won’t be the case, there will be blood as old habits are hard to break and very few traders and investors can take losses to save face. Sheer arrogance a lot of times gets the best of people and trading markets are notorious masters at crushing even the most arrogant of egos.

So play it smart, don’t be a hero, pick your spots, know your outs and if you are one of those value dip buyers, partition your buys at various levels across both a price level and time based approach. Meaning don’t buy all at once, stagger things, trade around levels and keep things manageable! One of the best things a trader can do if they are sustaining losses is purely, just walk away, learn to live and come back to fight another day. Don’t try to be a hero and cannonball your way back to even, it rarely works. The only way forward is methodology and discipline, remember that.

Ok guys we are moving forward to our subscriber only section where we provide our daily market trackers, which include data and results of over 25 various markets that cover the majority of the global macro markets from US treasuries, to equities, to FX, metal and energies. All sectors seemed to have pointed toward this same risk deleveraging thesis today. Subscribers also get out Commodity Trading Advisor model sentiments for the markets we cover, they got our exclusive MEGA8s market cap equity data which includes our unique suggestions on how to hedge a static only long book of equities. You will get our StrategyB Equity and Bitcoin analysis and so much more. Honestly we would love for each and everyone to gain the knowledge and insight that can only come from decades of markets experience.

This is where the real insights come to life-where we separate the signal from the noise.

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