The Opera Ain’t Over - Globalist vs American System
Posted by freedomforall 3 hours, 52 minutes ago to Politics
Excerpt:
"THE STOCK MARKET IS THE MOST IMPORTANT ECONOMIC INDICATOR TODAY. Keep telling yourself this over and over because it explains every move the President makes, especially in the Persian Gulf. Military commanders get the green light to hit targets when the stock market is stable and red lights when it is teetering.
The Iranians can thank Leopold Aschenbrenner for the respite in bombing last weekend. If the Situational Awareness Fund wasn’t being liquidated, it’s likely that the bombs would have kept falling. Instead, we got nonsense about talks in Oman, a blue-light special for Citadel, and a face-ripping rally in tech this week. But now that tech stocks have recovered, the US military can resume dismantling the IRGC this weekend.
It's not just tech stocks that needed to recover; it was also the Japanese yen. The yen carry-trade was at risk of ending because a falling Japanese yen was pressuring Japan to raise interest rates, reducing the profitability of the trade. Instead, the US government intervened. The double long ETF gives us a more dramatic view of what took place.
...
The problem for the US government is that they need to keep things stable for three more months and that will likely mean more short squeezes following sell-offs. The problem with short squeezes is that they’re similar to the martial art of judo where a judo master uses an opponent’s weight and momentum against him. It only works when there is a concentration of short positions leaving traders very little room to maneuver.
The conditions were right last Friday when the knucklehead running the levered AI fund started a feeding frenzy of short sellers trying to profit from his need to liquidate; the short sellers left themselves vulnerable. But these conditions don’t exist every day – short sellers have learned to protect themselves, for the most part.
This is why I believe we’ll get far more volatility in the next three months…"
"THE STOCK MARKET IS THE MOST IMPORTANT ECONOMIC INDICATOR TODAY. Keep telling yourself this over and over because it explains every move the President makes, especially in the Persian Gulf. Military commanders get the green light to hit targets when the stock market is stable and red lights when it is teetering.
The Iranians can thank Leopold Aschenbrenner for the respite in bombing last weekend. If the Situational Awareness Fund wasn’t being liquidated, it’s likely that the bombs would have kept falling. Instead, we got nonsense about talks in Oman, a blue-light special for Citadel, and a face-ripping rally in tech this week. But now that tech stocks have recovered, the US military can resume dismantling the IRGC this weekend.
It's not just tech stocks that needed to recover; it was also the Japanese yen. The yen carry-trade was at risk of ending because a falling Japanese yen was pressuring Japan to raise interest rates, reducing the profitability of the trade. Instead, the US government intervened. The double long ETF gives us a more dramatic view of what took place.
...
The problem for the US government is that they need to keep things stable for three more months and that will likely mean more short squeezes following sell-offs. The problem with short squeezes is that they’re similar to the martial art of judo where a judo master uses an opponent’s weight and momentum against him. It only works when there is a concentration of short positions leaving traders very little room to maneuver.
The conditions were right last Friday when the knucklehead running the levered AI fund started a feeding frenzy of short sellers trying to profit from his need to liquidate; the short sellers left themselves vulnerable. But these conditions don’t exist every day – short sellers have learned to protect themselves, for the most part.
This is why I believe we’ll get far more volatility in the next three months…"
