Nasty Weekly Close for Risk Assets
Risk Warning
Alright MTR readers, we just wanted to toss up a teaser post here as we are writing a more in depth piece here shortly, but this chart really stood out. Many long time readers that have followed along with us on this journey understood the significance of this weeks overall market action. One look at the QQQ ETF and it pretty much sums up everything, that everything is the culmination of years of dedicated risk and leverage being funneled to a very small subset of risk assets. This overconcentration has a whole host of inputs and not one is more important technically than the other, but rather taken in total seems to be painting a very clear picture.
This picture that is being painted on the charts is one that seems to offer a very formidable case for both technical market sentiment to turn negative as well as overall market fundamentals, which have been very weak but very well hidden by the Ai euphoria. We however believe that this is coming to an end, the idea that money can be completely levered up and become a self fulfilling prophecy works great, well, until it doesn’t.
We will go over all of those inputs in our full subscriber post coming up but for now, we just wanted to post the QQQ chart and the Bitcoin chart. The two charts that we believe sum up the massive over allocation to risk throttled by a tremendous blind appetite. This blind appetite driven by 30 years of Federal Reserve 9.8% annualized asset inflation. For MTR readers, they know the truth, that the Federal Reserve (FOMC) is the root that all monetary growth stems from. Facilitated by a never ending debt accumulation by the US Treasury, the FOMC facilitates this appetite and digitally prints any and all monetary needs our government desires. However now the law of large numbers is proving to be a very formidable equalizer, for now the debt will expand faster than ever before and that means the threat of inflation will have a more permanence affect.
Without further adieu, these are two of the many charts that are sending very ominous signals right now. This first one, the QQQ ETF, this week we informed our readers to look for a break of this massive wedge pattern higher and then a reversal to close right back in it. Well the QQQ read our script and delivered a perfect technical reversal. This signal is powerful, we won’t lie and no we do not believe it will be reversed this week. We believe a whole host of systematic and trend following levered accounts are about to unleash sell programs. Could we be wrong, could this just turn around next week and resume right back up to test the top of the wedge? Sure it could but that is about 5 to 1 against and a move below that 542 level will accelerate things even more:
(BTW that “Value Area” is the ultimate longer range target buy zone, we will get there at some point in time in the future, time will tell if our timing marker is proven correct)
The next chart is Bitcoin and boy o boy we aren’t forensic psychologists, but Michael Saylor looked and seemed very nervous and why wouldn’t he, if 25yr veteran derivatives traders like ourselves can see through his tiered risk structures, then so can others. Anyway StrategyB isn’t creating anything other than embedded leverage, it works great if you can sucker everyone to continue to provide capital and you can continue to corner a market, but the minute the asset price starts to fall, well that is where things get interesting! Anyway Bitcoin is faltering and it doesn’t have the halving to save it this time as that won’t occur for another 2.5 years and who knows where anything will be at that point. So for now, let’s just say a move below $112,500 will see an immediate sell off to $100k or below.
Ok guys that is it for now, we will have a more comprehensive post later this weekend. Sorry guys we are back to institutional pricing, our work is to formidable to just simply pass it off. We are altruistic in nature but we aren’t naive, we know the insight, the direction and the deciphering we provide is highly valuable to the right players. This doesn’t mean you need to be a pro, rather the opposite, we outline everything in a way so you can become whatever level of investor or trader you personally can become. Our goal is to get you to think outside the box, to not focus on return or money, but rather learn that linearity is temporary in a system of chaos, but among the chaos are pockets of opportunity, its up to you to see the light.
Anyway please try to share our work, try to subscribe, if you see value and want to support via BTC contributions to the address below.
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Anyone interested in investing in Monero (XMR) please reach out, we have a link to Kraken below if you use my referral code or link to try it, we’ll both earn 75 USD when you trade 200 USD of crypto in the app!
Code: y4wsyws7
Link: https://proinvite.kraken.com/9f1e/11l9bp1z
Additionally we would be glad to consult anyone interested in getting involved here. As always we view these crypto currencies in the same realm as futures, high risk, high reward, and every portfolio should have a small percentage of their overall portfolio in investments like this.
So if interested please reach out to the email below directly and we can discuss this further. The future of financial payment systems will be digital decentralized and we are still in the infancy of this fascinating technology!
If anyone is interested in working on a digital currency project and joining in as a core investor to help lay the foundation for what is to come, please reach out!
Cheers,
Magnelibra