No One Is Prepared For This

JC Parets
February 29, 2024

There's a lot happening in Crypto Markets right now, in case you hadn't heard. Bitcoin just hit $64,000. We'll talk about all that today at 2.

But even in traditional financial markets, you're seeing massive rotation.

How many investors do you believe are prepared for a market environment where Crude Oil prices are going up and the S&P500 is falling?

We saw that exact rotation last summer and into the Fall. But that was just the appetizer. What are you going to do when the main course gets served?

This is a chart of the Crude Oil ETF vs the S&P500 ETF, just to keep things simple. But you'll see the same thing if you're looking at futures, or even if you change up the stock market index.

I don't really trust humans. They're wrong a lot, and many times they're just lying.

I trust dogs and I trust the bond market.

And so, with US 10-yr Yields hitting new multi-month highs every week, "A stock market rally based on expectations for lower rates", doesn't make any sense to me at all.

The exact opposite is what's happening.

And I don't see anyone talking about this.

Investors who own the S&P500, hold only 3% of their portfolio in Energy stocks.

If you own the Nasdaq100 QQQ, then you have 0% of your portfolio in Energy stocks.

And what about the commodity itself?

Who owns Crude Oil these days? I mean, it's not even an AI stock.

I try to go out of my way constantly trying to find the pain points in this market. A rally in Crude Oil prices with lower stock prices, being dragged down by Tech, will likely hurt the most amount of investors.

We have the data. We see the positioning.

An unwind in this chart above will cause the most amount of pain to the most amount of investors.

We love that.

Those are the types of trades we look to profit from. So this one is front and center.

The only thing that will save investors is for US interest rates to roll over here.

Again to be clear, the exact opposite is happening.

The Treasury Bond market has been falling all year. But why?

I think it's because the pain is about to come for investors who are unprepared.

But that's why you come here, right? So you're prepared for whatever the market brings?

Stick around.

We got you.

But first, let's talk Crypto Markets today at 2PM ET. There's a lot going on that we need to discuss immediately.

Crypto Markets are moving now.

We'll get back to Energy and Tech tomorrow.

Crypto is moving at this very moment.

See you at 2. Register Here.

 

 

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