SP500 Ledge Holding
SP500 holding on to 3 month long base or what we will now call the “LEDGE”
This level is huge for weak longs and will open up massive downside if given away, most likely first stop would be the .382 at 3050. However as bearish and negatively defensive Magnelibra is, we aren’t dumb. The financial markets are driven directly by QE and levered buyers who monetize when their data pools suggest fresh new “dumb” money retailers buying late, (think Robinhooders, think Portnoy pushing his green hammer) This brings in the necessary liquidity to dump into and that is what we have seen this entire month.
Yea we know markets can’t rise indefinitely and that a cleansing comes, but waiting for that is a widow maker trade and even during times like this where our systems know full well risk is skewed to the downside, there will be days where we rip hire and we can use those to get short better levels. Which is why we show this chart of the SP500 and the base level we have highlighted.
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