https://twitter.com/finwatchdog/status/1418604867447361536
The interesting thing about this is other reports and channels I keep up with have more or less (and unknowingly) converged to corroborate that August 2 seems to be a big day as apparently Yellen is urgently recommending debt limits be increased or ceased or we’re looking at treasury defaults.
This all seems to align with the models suggesting a crash of sorts very soon.
@jgsavoldi Got any thoughts on this and its impact on the market?
I’m also interested to hear if this type of news fits with the potential ‘macro’ catalyst Jim has referred to in a few different videos.
Nice DD. Could be the trigger. If they overleveraged and a correction puts stress on the long positions it would increase margin requirements and stress to close the shorted positions. After the rebalance the “elephants” would renter and hopefully anemoi will be up so we can have another tool to navigate the volatility.
I think this will be a catalyst and the market correction / crash will start next week because mega-cap stocks reporting earnings this week and more than likely all of them will have great numbers. this is the first step in big players unloading positions. They will sell to the “average joe” who will jump on the hype for these big names and the numbers they produced. This will also give them some profit cushion before they have to report their leverage Friday evening.
damn, that is so on point. Faux-MO at its finest.
I"m really hoping this is the case, however, not trying to throw shade on this but there has been so much press about this, surely you would think banks and hedgies are all positioned and prepared for this event? i mean…could they really be that slow to react?
@apex188 i believe they are reacting and that’s why in the past few weeks we have had those quick drops but with delta concerns and inflation numbers coming out middle of next month along with the leverage i think it’s a vicious cycle that they won’t be able to control.
Has anyone heard anything else about this today? It will be interesting to see if it causes any disruption leading into next week.
nothing so far. I think it’s more just wait and watch. Knowing it’s coming, it will also be interesting to see if anyone reacts first. I know there have been all kinds of weird things after hours with some of the big tickers: amazon, facebook, pinterest et al.
Follow up to this post. Without muddying the forum with off-topic discussion, I won’t dive too deep, only post the link to the report and what appeared in bloomberg terminal earlier this week then disappeared the next day: large put positions by two institutions OUTSIDE of the US banking system (positions are for GME but likely apply to AMC).
Looking forward to next week.
