Over the past two weeks, the S&P 500 has drawn down more than 5% as it broke its 50-day moving average and the volatility index has spiked above $28. The question now is, when is the pain over. From my readings, the pain ended today. The bottom is in (9/20). Here’s why I think that. Retail and the fintwit community loves to talk about things that have already been priced in. I mean how else are big players going to get liquidity? So, let me get this right. People are now all jacked up about Evergrande, AFTER a 5% correction. Big players were hedged on this situation WAY before everyone was talking about. They are now removing hedges and getting long while everyone else is getting short or putting on “protection”. Be a step ahead, not a step behind.
Opinion: U.S Indies have bottomed (for now)
Opinion: U.S Indies have bottomed (for now)
Opinion: U.S Indies have bottomed (for now)
Over the past two weeks, the S&P 500 has drawn down more than 5% as it broke its 50-day moving average and the volatility index has spiked above $28. The question now is, when is the pain over. From my readings, the pain ended today. The bottom is in (9/20). Here’s why I think that. Retail and the fintwit community loves to talk about things that have already been priced in. I mean how else are big players going to get liquidity? So, let me get this right. People are now all jacked up about Evergrande, AFTER a 5% correction. Big players were hedged on this situation WAY before everyone was talking about. They are now removing hedges and getting long while everyone else is getting short or putting on “protection”. Be a step ahead, not a step behind.