How and When to Short The Market PDF Version
This is not advice, This is my personal approach. I don’t give advice on trading. I have managed investments for others in the past, Doing so diminishes my judgement.
There are no good investments in the economy today. GDP is elevated just because the stock market has been goosed since 2006, Everything is overpriced, even gold. This is what happens when government is used as a tool for building wealth for those who control it. Tariffs will guarantee an outright depression. Free market attributes are necessary for launching a recovery,
With a change of presidents, we will now have a new set of billionaires making policy. This is not the Deep State. It is history. A new crime family is in charge now, so to speak.. U.S. citizens are now resources to be exploited by the new consortium. Assets will be routed. They will pick up Deep State owned assets at bargain basement prices. Tariffs have never failed to destroy equity prices. This time will be no excerption.
Get the basics down and don’t let sophisticated explanations convince you that they are irrelevant, Almost all errors and misunderstandings occur because of getting the basics wrong.
Central planning destroys any economy, The U,S has a centrally planned economy, while masquerading as a free market system. History has generated a long list of situations where poor economies have been wiped out by way of central planning. Now, we are witnessing the destruction of major prosperous economies that were built on free market principles, No economy has ever recovered without free market attributes in place, .Whether it is a crash initially, or an orderly decline, markets are going to drop and will see little or no light for at least two years.
But, it makes no sense to just short and place stops, This is not for quick money, This is to make a whole bucket of money over a long timespan. After a severe bear market, many of the losers never recover. Those are the stocks I am looking for. These will be long term shorts. Some, I my never cover. Most will end up in the pink sheet graveyard hoping for a zombie compony apocalypses.
For these types of stocks, it is fine to short after the averages are in a downtrend. The thing to avoid on the short side is that of losing all of your capital trying to get positioned before the market tanks.
To do it this way, requires nd scanning a lot of stocks looking for the right kind of chart patterns, and pulling the trigger when the timing is right, Below are monthly, weekly and daily charts of stocks that end up on my potential short sale list, With respect to fundamentals, I look for a lot of debt and evidence their utility to society is diminishing.I am not short this stock, at least not yet, It just an example.
Monthly
The 200 MA is declining and it never accomplished a thing during the long bull market. I would love for the price to be closer to the 200 DMA.
Weekly
The weekly chart is a lot closer to its 200 week MA. If the price was just a little closer to the 200 week MA, I would be prone to pulling the trigger and adding it to my portfolio of long term shorts.
Daily
Based on the daily chart, Given that the situation is right with respect to the averages, I might short it despite the other two charts being somewhat less than stellar.
This is a once in a lifetime opportunity. These are not the only bearish positions I will have. .I am already long a bunch of 3X inverse ETFs. The TECH sector, especially the FANGs and friends and biotech will fall off a cliff. It will be a blood bath,
No matter what, I will have plenty of cash with to buy at the bottom of the carnage, That is the most important thing. It will be like baying during the Great Depression of the 1930s.
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It does seem like it’s going to be an exciting time to be a short soon, possibly VERY soon. I remember reading a long time ago that economic depressions occur every eighty years , which makes sense, eighty years being 4 generations (or two if you use 40 years as a “generation”). Eighty years after the Great Depression brings us roughly to the 2008 Collapse. Unprecedented steps like quantitative easing by the FED and a massive bailout by Congress may have gotten us a temporary respite but perhaps we are now at the edge of the abyss.
For me, it is a matter of survival. I have come to hate trading, Cycles besides, there is no way the economy will not collapse.
James, here’s yet another dimension of the YOUR-GOVERNMENT-IS-OWNED-BY-ORGANIZED-CRIME theme. I doubt this will surprise you, but I found it to be a very interesting interview:
Homes Appraisers Caught Lying to “Hike” Property Taxes (Mitch Vexler’s Criminal Complaint)
What happens if property values drop off a cliff? We serve as resources to be used to support the state and local governments. How about asking for donations?
Well, WAR has often been used to cover financial misdoings and engage in financial resets. I think thats what happens when this trend is milked until the last drop. It seems Europe is financially worse off than us which is why the leaders of France, Germany and the UK are so hot to put “peacekeepers” in Ukraine. When theyre eventually attacked – false flag or no – then the much bigger conflagration erupts.