The most obvious and predictable opportunity you can't see
A chance for generational wealth in a (few) day(s) is coming, we just need to be prepared for it
Clarity
Having a awareness and understanding of the effects of your emotional state always has a important and often understated effect on your performance. But in extremely volatile markets it is literally everything. Being able to clear out all the emotions of the past six months and stay wide eyed will allow you to spot a excellent opportunity to take advantage of the most predictable, life changing move in the market you’ll ever see.
Although this market may seem tougher than it ever has been, here you don’t need to be smarter or have more information that anyone else you just need to have to proper mindset and focus. Mindset and focus won’t be enough of for you in most instances, in fact many times they are useless qualities but here and now it is literally everything.
If you’ve been following along with me on twitter you know we were able to perfectly time the market turn in January and hopefully you’ve made some money (Q1 and Q2 have been some of my most profitable Quarters) or at the very least saved some money.
Even though the markets have already taken a severe beating, a panicked FED endlessly wrong on everything these past 18 months, the beginning of QE, rising threat of stagflation, global recession, a endless war in Ukraine, and China Taiwan tensions on high alert with many experts seeing a chinese invasion likely in the next 12 months, these are just a few of the many myriads of reasons why it’s hard to have a high level on conviction to call a bottom in this market for a long term investment. On the other side with so many stocks already so severely beaten most at their 52 week low its also hard to have a high level of conviction on the short side, (except for the recent De-SPACs which have been trapped in time since they announced their merger having their price held up by NAV) especially with the threat of a cease fire headline dropping at any moment that can squeeze you out or the inevitable short squeeze, the risk seems way to high to have a strong level of conviction at this point in the market.
Given the status of the current markets and the emotional roller coaster of the last six months whether you killed it or got killed opportunity for a high conviction trade may seem completely unattainable. However, nothing can be further from the truth. We are about to enter the most predictable violent move you’ll ever see in the markets, and as long as you can clear out everything from the last six months and are clear eyed and focused on the opportunity that is about to present itself you will be able to take advantage.
Single Focus
Although the outlook on the markets over even short time frames are completely unpredictable in this climate there is one thing that is certain and that is that we will soon have a vicious face melting bear market rally, that in my mind is the only thing you should be thinking about and focused on in the very near term going forward.
The reasons behind a bear market rally is not something I am covering here, but its important to note that historically they don’t occur at a well defined area of technical support a combination of extreme oversold technically and short covering though are the usual culprits. Your main focus should every single bear market no matter how bad its been whether it was the great depression, the dot-com bubble, or the 2008 financial crisis there have always been massive upside moves sometimes lasting days and at times week or even months. But they always happen and they are always extreme.
The dot com bubble bear market saw 5 large bear market rallies where the indices rallied over 20% four times.
The financial crisis of 2008 also saw some massive rallies in the extreme bear market.
The great depression saw four moves of over 24%
Although the time frames of these moves can last for days or weeks we have also seen the indices have their largest single day rallies in bear markets
Being that these moves are so extreme you do not need to be a hero and try and call a bottom, as long as you are expecting it you will have plenty of time to notice it when it comes, and you can build the conviction to dive head first into it at a time when most have been so beaten down they will avoid and only the brave will dip their toes in it. But if your mindset is right you’ll understand this opportunity and be able scale in with size. Don’t get overly greedy gradually move up your stops and you can see the largest gains you’ve ever encountered and its all so obvious and predictable. To execute this you don’t need to be smart you just just need to be focused.
The beauty of the enormity of these moves even if your not like me and doing weekly deep OTM options is not for you. You can still make gains of 10% - 30% in size just by longing the QQQs at the right time.
I am not a financial advisor, do not listen to anything I say you will likely lose all your money. But I am myself when i see the signs of this certain event of the bear mkt rally I will go 50% port all in deep otm call options.
I also see a chance for a even larger bear market rally than we’ve historically seen given the large amount of HFT and algos mixed with a new brand of retail put buyers I would not be shocked to see something more vicious then we’ve ever seen, followed shortly after by another massive epic dump to the depths.
Everyone knows they’re will be a bull market rally, everyone.
But few have the proper mindset and focus to zero on it on the ramifications of this life changing opportunity
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Thank you and have a blessed day!
love this mystic, can't wait to catch this rally with you
i read this a week too late, spot on!